Massachusetts-based ATN International (formerly Atlantic Tele-Network) has announced that it has closed its acquisition of Caribbean Asset Holdings, the holding company for the Innovative group of companies, which offers cable TV, broadband and landline services primarily in the US Virgin Islands (USVI). ATN agreed to acquire the company from the National Rural Utilities Cooperative Finance Corporation (CFC) in October 2015. ATN has confirmed that it has paid a purchase price of approximately USD145 million, subject to certain purchase price adjustments, with USD85 million payable in cash and the remaining USD60 million financed with a loan from the Rural Telephone Finance Cooperative, an affiliate of CFC. As part of the transaction, ATN also acquired Innovative’s smaller cable TV operations in the British Virgin Islands (BVI) and Sint Maarten.
Going forward, ATN intends to combine the Innovative operations with its current Choice-branded wireless operations in the US Virgin Islands. Based on current visibility, ATN expects the combined company to have aggregate annual revenues of approximately USD100 million-USD110 million, and initial EBITDA margins of approximately 20% for the first full year of operations, excluding one-time integration and transactional expenses.