Cogeco Communications of Canada has announced that its US subsidiary, Atlantic Broadband, has entered into a definitive agreement with Harron Communications to purchase all of its cable systems operating under the MetroCast brand name. Cogeco will finance the acquisition through its Atlantic Broadband subsidiary, with a combination of committed secured debt provided by two banks and an equity investment by Caisse de Depot et Placement du Quebec (CDPQ). The transaction is subject to regulatory approvals along with other customary closing conditions and is expected to close in January 2018. Louis Audet, President and CEO of Cogeco, commented: ‘The acquisition of the MetroCast cable systems allows Atlantic Broadband to increase its presence in the growing and lucrative US cable market. 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.’
MetroCast’s networks pass close to 236,000 homes and businesses in New Hampshire, Maine, Pennsylvania, Maryland and Virginia and serve approximately 120,000 broadband, 76,000 pay-TV and 37,000 telephony customers. Based on the number of TV customers served, Atlantic Broadband claims to be the ninth largest cable operator in the US; the company currently provides services to customers located in five operating regions: western Pennsylvania; Miami Beach, Florida; Maryland/Delaware; Aiken, South Carolina; and eastern Connecticut. Atlantic Broadband’s primary service units (PSU) will increase from approximately 602,000 to 835,000 pro forma the acquisition.