Cequel picks up NPG for $350M
Mon, 11/29/2010 - 7:25am
Suddenlink Communications' parent, Cequel Communications, is buying up NPG Cable for approximately $350 million.
NPG Cable claims approximately 83,000 customers, who translate into approximately 210,000 revenue-generating units.
While the final cost of acquisition remains dependent on several factors, as it stands, the per-subscriber cost works out to just more than $4,200 per subscriber. That figure is right about the going rate; Cablevision's acquisition of Bresnan Communications, for example, worked out to be about $4,300 per sub.
The purchase of NPG Cable from News-Press & Gazette Co. is expected to close early in 2011.
NPG has systems in St. Joseph, Mo.; Mammoth Lakes, Calif.; and clusters in Arizona that include the cities of Flagstaff, Sedona, Lake Havasu and Kingman.
Suddenlink has operations in Maryville, Mo., and Bishop, Calif., which are proximate to NPG's cable systems in St. Joseph and Mammoth Lakes, respectively. Suddenlink expects to be able to combine those properties after the acquisition closes.
Jerry Kent, Suddenlink's chairman and CEO, said: "This acquisition is a solid fit with our existing operations, and we have a proven track record of serving similar communities. We have great respect for NPG and its owners, the Bradley family, and look forward to working with them on the transition."