Liberty Global, aided by funding from Searchlight Capital Partners, has snapped up Puerto Rico's Choice Cable TV in a deal valued at $272.5 million.

As the No 2 operator in the territory, Choice's network passes approximately 345,000 homes. But Choice's operations will be combined with Liberty Cablevision of Puerto Rico, to create the largest cable operator on the island. It will be 60%-owned by Liberty Global and 40%-owned by Searchlight.

"The Choice transaction will build upon our 2012 acquisition of OneLink, and will complete cable consolidation on the island of Puerto Rico," said Mike Fries, CEO of Liberty Global. "Going forward, our market-leading bundles and commitment to network investment and innovation will meaningfully enhance the products and services available to Choice customers."

Upon completion, the network will reach more than 80% of Puerto Rican homes, serve more than 700,000 customers and generate $380+ million of annual revenue.

The combined company will also be the first new asset in the anticipated tracking stock for Liberty's businesses in Latin America and the Caribbean.

"We are excited about the opportunity to bring next-generation video capability and enhanced broadband services to Choice's customers," said Eric Zinterhofer, co-founder of Searchlight. "Furthermore, through the creation of an island-wide cable operator, there are significant opportunities to drive scale benefits and develop incremental residential and commercial business opportunities in Puerto Rico."

Read more: Liberty Global gobbles Puerto Rico's Choice Cable | Cable | News | Rapid TV News