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Atlantic Broadband last week closed on its $1.4 billion purchase of MetroCast Cable systems.

Previously owned by Harron Communications, MetroCast systems pass about 236,000 homes and businesses in Main, Maryland, New Hampshire, Pennsylvania, and Virginia. When the deal was announced in July, MetroCast served about 120,000 internet, 76,000 video, and 37,000 telephone customers.

Canadian cable operator Cogeco Communications said its U.S. subsidiary raised $1.85 billion of secured debt, and received an additional $315 million through an equity investment from Caisse de dépôt et placement du Québec (CDPQ) for a 21 percent stake in Atlantic Broadband’s holding company.  These proceeds were used to finance the $1.4 billion purchase price and refinance Atlantic Broadband’s existing debt, Cogeco said.

MetroCast will continue to offer its current TV, internet, and phone services to business and residential customers under its existing brand name. This spring, Metrocast will start offering a suite of enhanced services under the Atlantic Broadband brand name, the company said.

Cogeco decided to buy the rest of MetroCast systems operations about two years after it purchased the company’s Connecticut operations in 2015 for about $200 million.

“After our highly successful acquisition and integration of the MetroCast Connecticut system more than two years ago, we understand the significant residential and business growth potential in this business,” Richard Shea, Atlantic Broadband president and CEO, said in a statement. “A core strength of MetroCast has been its excellent operational and service team. We are pleased to welcome all MetroCast operating employees, including the local general managers, to the Atlantic Broadband family. We look forward to working together to launch new and improved TV, internet and phone services to residential and business customers in these markets.”

In earlier announcements, Atlantic Broadband said that with the acquisition, it expects its PSUs to grow from about 602,000 to 835,000. The company said the deal expands Atlantic Broadband’s operations across 11 states on the east coast of the U.S.

“This acquisition establishes Atlantic Broadband as a strategic platform in the U.S. with a diverse footprint extending up the East Coast from Florida to Maine,” Louis Audet, president and CEO of Cogeco, said. “It has been a great opportunity to partner with CDPQ for this transaction and we look forward to working with them to continue to grow this business in the U.S.”

 

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