Canada’s Cogeco Cable, has agreed to buy US cableco Atlantic Broadband for USD1.36 billion, allowing the company to expand into its neighbour market after a failed attempt to gain a foothold in Europe with Portugal’s Cabovisao. Cogeco is purchasing the company from private-equity firms Abry Partners and Oak Hill Capital Partners in a deal that is expected to be completed by end-2012. Atlantic Broadband was formed in 2003 and claims to be the 14th largest cable TV system operator in the United States, with 252,000 customers, including an unspecified number of broadband and voice telephony users. It operates cable systems in Pennsylvania, Florida, Maryland, West Virginia, Delaware, South Carolina and New York. Louis Audet, president and CEO of Cogeco Cable, commented: ‘This acquisition marks an attractive entry point into the US market for Cogeco Cable. There are sizable opportunities for growth including: increasing the penetration of the small and mid-sized business segment, and maximizing the bundling potential of services in the residential sector’.
As previously reported by TeleGeography’s CommsUpdate, in February this year Cogeco offloaded its struggling Portuguese unit Cabovisao to France’s Altice Group, in a transaction worth EUR45 million (USD60.5 million), a mere fraction of the EUR465 million it paid for the company in June 2006.