Cequel III to buy Shaw's Texas systems

Jerry Kent and Cequel III LLC stayed on the acquisition warpath Friday, inking a deal to buy Shaw Communications Inc. 's Texas-based cable systems for $85 million.

Earlier this month, Cequel III agreed to invest in and assume the management of Classic Communications, an MSO with about 325,000 cable subs in 10 states: Texas, Kansas, Oklahoma, Missouri, Arkansas, Louisiana, Nebraska, New Mexico and Ohio.

Cequel III said the Shaw deal will complement its arrangement with Classic. "This acquisition is another key step in our efforts to create a major U.S. cable operator," said Paul Estes, Cequel III's senior vice president of corporate development, in a press release.

Under the terms of the deal with Canada-based Shaw, Cequel III will take over systems serving about 27,000 cable customers, including the Houston-area communities of Kingwood, Lake Conroe and Lake Livingston.