Liberty Global joins Searchlight Capital Partners in Puerto Rico

Iñaki Ferreras ©RapidTVNews | 01-07-2012

Liberty Global and private equity firm Searchlight Capital Partners are to acquire OneLink Communications, which provides cable services, broadband and telephony in Puerto Rico, for US$585 million.

Following the closing of the acquisition, OneLink will merge with Liberty Cablevision to become the largest cable company in Puerto Rico, with a combined base of 700,000 households and 480,000 RGUs. Liberty Global will have 60% of the merger while Searchlight will be 40%.

Mike Fries, president and CEO of Liberty Global, said: "This is consistent with our strategy to consolidate our position in markets we serve and the transaction will make us the leading provider of cable services in Puerto Rico, beating about 70% of cable households in the island, and increasing the scale substantially to our existing operation.

"As an innovation leader in Puerto Rico, particularly in bandwidth, high-speed HD, we aim to bring that expertise to the business of OneLink. Combined, we have about 700,000 households and 400,000 RGUs, generating nearly $300 million in pro forma revenue in 2011. Finally, we are excited to work together with Searchlight and drive value for our respective shareholders."

Eric Zinterhofer, co-founder of Searchlight, added: "There is a clear strategic logic to this transaction, which will improve the combined capacity of the company to offer services of high quality communication in Puerto Rico. Liberty Global is the best operator and hopes to be your partner in this exciting transaction."