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Cogeco To Acquire Connecticut’s MetroCast for $200M

Cogeco Cable subsidiary Atlantic Broadband agreed buy substantially all of the assets of MetroCast Connecticut for $200 million, said a Monday news release from Atlantic Broadband. The tax-adjusted purchase price, which reflects the tax benefit of amortizing intangible assets in…

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an asset purchase, is approximately 7.9 times the 2015 expected adjusted EBITDA of Atlantic, the release said. MetroCast Connecticut’s network passes close to 70,000 homes and businesses in nine communities in eastern Connecticut, the release said. MetroCast Connecticut’s system also has about 23,000 TV, 22,000 Internet and 8,000 phone customers, Atlantic said. “With eastern Connecticut’s strong demographics and MetroCast Connecticut’s well-maintained networks, this acquisition brings sizeable residential and business growth opportunities,” said Atlantic Broadband CEO Richard Shea. Cogeco Cable intends to finance this transaction through non-recourse debt to be issued by Atlantic Broadband, the company said.