Done deal: Cogeco wraps up deal to buy Atlantic Broadband
Cogeco Cable has officially planted its flag in the United States now that its $1.36 billion purchase of Atlantic Broadband is complete.
Cogeco, the fourth-largest cable operator in Canada, announced back in July that it had a deal in place to buy Atlantic Broadband from Abry Partners and Oak Hill Partners. Atlantic Broadband is the 12th-largest cable operator in the United States and offers triple-play services in western Pennsylvania, southern Florida, Maryland, Delaware and South Carolina. Atlantic Broadband, which was formed in 2003, has 251,000 video subscribers.
"This is a very important day for Cogeco Cable, as this acquisition marks our entry into the United States market. There are sizable opportunities for growth, including increasing the penetration of the small- and mid-size business segment and maximizing the bundling potential of services in the residential sector. I am very pleased to confirm that Ed Holleran, one of Atlantic Broadband's founders, will continue to lead our U.S. operations team as CEO. I would also like to welcome all Atlantic Broadband employees to the extended Cogeco family," said Cogeco President and CEO Louis Audet.
Now that the deal is complete, Cogeco Cable serves more than 2.45 million primary service units (PSUs) in Canada and in the United States.
"We feel that this transaction creates a great opportunity for Atlantic Broadband's customers and our employees. Cogeco Cable is a very solid company that has strong experience in our industry. Our companies share much in common and, because of our combined expertise, we see strong growth opportunities for the future through enhanced services for our residential and business customers," Holleran said.
Earlier this year, Cogeco sold Portuguese subsidiary Cabovisao for $60 million, which was significantly less than the $660 million it paid for the company in 2006.