Canadian cable company, Cogeco Cable Inc yesterday said that it would buy privately-owned cable system operator Atlantic Broadband for $1.36 billion, in order to enter into the US cable market.
Founded in 2003, Quincy, Massachusetts-based Atlantic is owned by private equity firms Abry Partners and Oak Hill Capital Partners.
It is the 14th largest cable television system operator in the US and operates certain cable systems in Pennsylvania, Florida, Maryland, West Virginia, Delaware, South Carolina and New York in four main clusters: Western Pennsylvania, Miami Beach, Maryland / Delaware and Aiken, South Carolina.
It has over 700 employees and 255,000 customers as of December 2011.
"This acquisition marks an attractive entry point into the US market for Cogeco Cable. There are sizable opportunities for growth including: increasing the penetration of the small and mid-sized business segment, and maximising the bundling potential of services in the residential sector," said Louis Audet, president and CEO of Cogeco Cable.
Post acquisition, Cogeco Cable said that it will serve more than 1.1 million basic video customers across Canada and the US.