Atlantic Broadband, a wholly owned subsidiary of Cogeco Cable of Canada, has entered into a definitive agreement with MetroCast Communications of Connecticut and its parent Harron Communications to purchase substantially all of the assets of the former for USD200 million. MetroCast Connecticut’s network passes close to 70,000 homes and businesses across nine communities in eastern Connecticut, including New London, Waterford, East Lyme, Montville, Plainfield, Killingly, Sterling, Griswold, and Putnam.
In operational terms, MetroCast Connecticut’s system serves approximately 23,000 TV, 22,000 broadband and 8,000 voice customers, with expected 2015 revenue of around USD45 million and adjusted EBITDA of USD21 million.
Following a wave of M&A activity within the US cable sector, Atlantic Broadband – the 13th largest cable operator in the country – has been named by industry observers as a possible acquisition target for one of its larger rivals. However, its own acquisitive strategy is likely to put an end to such speculation, at least in the short term.