Cogeco Cable is purchasing the US cable firm Atlantic Broadband for $1.36 billion.
The Quebec-based telecommunications services company will acquire all the shares of the independent cable provider Atlantic Broadband, of Quincy, Massachusetts, with the help of two investment firms. The transaction will be executed by a combination of cash, a revolving term credit and term loan.
After the transaction, Cogeco Cable will get the fourteenth largest cable operator in the United States.
Atlantic Broadband has over 252,000 customers in South Carolina, Delaware, Florida, Maryland and Pennsylvania. Atlantic Broadband employs 700 people.
Atlantic Broadband provides cable television services, Internet access and broadband IP telephony. The company serves residential customers, but also commercial customers. Atlantic Broadband was founded in 2004 when the telecommunications service provider Charter Communications has divested itself of assets in non-strategic.
Cogeco Cable will have to get multiple approvals due to the Hart–Scott–Rodino Antitrust Improvements Act as well as the Federal Communications Commission and state and city governments before becoming a business owner Atlantic Broadband.
When the transaction is completed, Cogeco Cable will have 1.1 million customers in Quebec, Ontario and the United States. In early 2012 Cogeco made an important divestment in Portugal, when it sold with a big loss the entity Cabovisao to European investor Altice Group.