MetroCast now part of Atlantic Broadband

MONTREAL, Québec and QUINCY, Mass. — Atlantic Broadband, the 9th largest cable operator in the U.S., has acquired all of MetroCast’s cable systems including the one in New Hampshire in a $1.4 billion deal.

Atlantic Broadband will continue to operate under the MetroCast name and customers do not have to take any action. Atlantic Broadband will roll out a suite of products and services in the late spring, so customers can expect to see new capabilities such as its TiVo service with Netflix access and increased internet speeds.

Atlantic Broadband said in a press release that the company looks forward to welcoming MetroCast system employees to the Atlantic Broadband family. The company will continue to maintain MetroCast’s operational efficiency and its local operations and General Manager Ed Merrill will continue to lead the company in New Hampshire and Maine.

With this acquisition, Atlantic Broadband now offers services in 11 states that span from Maine to Florida. The combined company will pass more than 800,000 homes and employ more than 1,200 people on the East Coast. Cogeco Communications Inc. said yesterday that its subsidiary Atlantic Broadband has completed the acquisition of cable systems owned by Harron Communications, L.P. and operating under the MetroCast brand name.

Atlantic Broadband raised $1.85 billion of secured debt through a combination of term loan B and revolving credit facility financings as well as $315 million of equity through an investment by Caisse de dépôt et placement du Québec for a 21 percent interest in Atlantic Broadband’s holding company. These proceeds were used to finance the $1.4 billion purchase price and to refinance Atlantic Broadband’s existing debt.

With the completion of this transaction, Atlantic Broadband will expand its operations across 11 states on the east coast of the United States. On a pro forma basis, the combined company will have 1,250 employees and will generate over $710 million in combined revenue.

“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,” said Richard Shea, Atlantic Broadband president and chief executive officer. “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.”

“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,” said Louis Audet, president and chief executive officer of Cogeco Communications Inc., the parent company of Atlantic Broadband. “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.”