Liberty Global wraps up OneLink acquisition
Liberty Global announced on Friday that it had completed its deal to buy Puerto Rican cable operator OneLink Communications.
The $585-million-dollar deal was first announced in June. In a somewhat convoluted financial arrangement, a subsidiary of Liberty Global contributed its 100 percent interest in Liberty Cablevision of Puerto Rico, and Searchlight contributed cash to Leo Cable, an entity that, in turn, used the Searchlight cash to acquire 100 percent of the equity of San Juan Cable, which operated under the OneLink Communications company name.
Leo Cable is ultimately 60 percent owned by LGI and 40 percent owned by Searchlight. LGI will have a controlling financial interest in, and will consolidate, Leo Cable. The end result is the largest cable operator on the island, with homes passed of approximately 700,000 and revenue-generating units (RGUs) approaching 500,000. LionTree Advisors and Scotiabank acted as financial advisors to Leo Cable.
Triple-play provider OneLink was owned by MidOcean Partners and Crestview Partners, which paid $250 million in 2005 to buy the property from Adelphia.
"Consistent with our strategy of consolidating markets within our footprint, this transaction will make us the leading provider of cable services in Puerto Rico, passing approximately 70 percent of the cable homes on the island and adding substantial scale to our existing operation,” said Liberty Global President and CEO Mike Fries back when the deal was first announced. “As a leader in innovation in Puerto Rico, particularly in high-speed broadband and HD, we aim to bring that expertise to the OneLink business.”