About two years after purchasing MetroCast’s cable system in Connecticut, Atlantic Broadband has agreed to buy the entire company from parent Harron Communications in a deal valued at $1.4 billion.
Atlantic Broadband parent Cogeco Communications said it will finance the deal through a combination of bank debt and an equity investment by Canadian institutional investor Caisse de dépôt et placement du Québec (“CDPQ”).
MetroCast passes about 236,000 homes in New Hampshire, Maine, Pennsylvania, Maryland and Virginia and serves about 120,000 high-speed internet, 76,000 video and 37,000 telephony customers. Its 2017 revenue is expected to be about $230 million and its adjusted cash flow $121 million.
“The acquisition of the MetroCast cable systems allows Atlantic Broadband to increase its presence in the growing and lucrative U.S. cable market,” Cogeco CEO Louis Audet said in a statement. “The MetroCast systems are a strong strategic fit for Atlantic Broadband. With this acquisition, we are increasing our customer base in attractive markets adjacent to the ones we currently serve. Under the guidance of Atlantic Broadband’s best-in-class management team, we are in a unique position to grow our customer base, revenues and profits.”