Two years after paying $200 million for MetroCast’s Connecticut operations, Atlantic Broadband has acquired the rest of the MSO in a $1.4 billion deal with owner Harron Communications.
Atlantic Broadcast made the deal at the behest of its own parent, Canada’s Cogeco Communications. The acquisition is expected to close in January 2018. Atlantic Broadband will add a cable operator with 236,000 residential and business passings in New Hampshire, Maine, Pennsylvania, Maryland and Virginia.
MetroCast serves approximately 120,000 internet users, 76,000 pay TV customers and 37,000 residential landline subscribers. MetroCast was expected to bring in around $230 million in revenue this year.
When the deal closes, Atlantic Broadband will offer services in 11 states spanning Maine to Florida. It will pass more than 800,000 homes and service more than 400,000 customers, while employing close to 1,200 workers and delivering more than $700 million in combined revenue.
Atlantic Broadband was listed as the 12th biggest cable operator in the U.S. back in 2015 after it purchased the Connecticut portion of MetroCast. Suffice it to say it is now in the top 10.
“The MetroCast systems are a strong strategic fit for Atlantic Broadband,” said Louis Audet, president and CEO of Cogeco. “With this acquisition, we are increasing our customer base in attractive markets adjacent to the ones we currently serve. Under the guidance of Atlantic Broadband’s best-in-class management team, we are in a unique position to grow our customer base, revenues and profits.”
“After our highly successful acquisition and integration of the MetroCast Connecticut system almost two years ago, we understand first-hand the sizable residential and business growth potential that we can expect with the remaining MetroCast systems,” added Atlantic Broadband President and CEO, Richard Shea. “We have a proven integration plan and a track record of successfully migrating our platforms and service offerings. These well-maintained systems deliver attractive demographics which make them ideal for our suite of residential video, internet and telephony services as well as our business services. We look forward to welcoming MetroCast customers and employees to Atlantic Broadband.”
In touting the deal, Congeco said that MetroCast’s systems “are largely located in nonmetropolitan markets with very attractive demographic previews and market dynamics."
Congeco also talked up MetroCast’s “high-quality, fully digital network,” which it said is “comprised of 860 MHz or fiber to the home in 95% of the network, providing 150 Mbps internet service across its footprint.”