Consolidation watch: Atlantic Broadband to buy MetroCast Connecticut
DetailsMichelle Clancy | 09 June 2015
Consolidation is continuing in the cable MSO space with a small regional deal announced this week: Atlantic Broadband is to buy MetroCast Connecticut for $200 million.
Atlantic Broadband, a wholly-owned subsidiary of Canada's Cogeco Cable, is the 13th largest cable operator in the US. This deal won't change the size ranking for the sector, but it could harbour the beginning of a slow regional consolidation movement that is similar to the CLEC buyouts of the last decade. That phenomenon saw a significant reduction of market players, leaving only a handful behind that serve customers with larger scale.
"We have been pleased with the results of our Atlantic Broadband acquisition and we are excited to continue our geographic expansion in the US market," said Louis Audet, president and CEO at Cogeco Cable. "This transaction enhances our growth profile through the planned launch of new residential services such as TiVo and Metro Ethernet for businesses."
MetroCast Connecticut's cable 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. Altogether, it serves approximately 23,000 TV, 22,000 Internet and 8,000 phone customers, with expected 2015 revenue of approximately $45 million and adjusted EBITDA of approximately $21 million.
"With eastern Connecticut's strong demographics and MetroCast Connecticut's well-maintained networks, this acquisition brings sizeable residential and business growth opportunities," said Atlantic Broadband president and CEO, Richard Shea. "Our goal is to deliver the best TV, Internet and phone services combined with responsive local support to the communities we serve. We look forward to welcoming MetroCast Connecticut's customers and employees to Atlantic Broadband."