Cable ONE Buying NewWave for $735 Million
Cable ONE (NYSE:CABO) has entered into a definitive agreement to acquire NewWave Communications for $735 million in cash. The ...
Cable ONE (NYSE:CABO) has entered into a definitive agreement to acquire NewWave Communications for $735 million in cash. The transaction is expected to be financed with $650 million of senior secured loans and cash on hand. The transaction is subject to customary regulatory closing conditions and is expected to be completed during the second quarter of 2017.
NewWave provides high-speed data, video and voice services to residential and business customers throughout non-urban areas of Arkansas, Illinois, Indiana, Louisiana, Mississippi, Missouri and Texas. NewWave's network passes nearly 428,000 homes and has more than 214,000 residential primary service units and 31,000 business PSUs. NewWave is headquartered in Sikeston, MO.
"We are excited about our acquisition of NewWave, which operates in non-urban markets similar to ours and has significant high-speed data and business services opportunities that we are well-positioned to execute on," said Julie Laulis, president and CEO of Cable ONE. "The transaction represents an attractive opportunity to utilize Cable ONE's existing balance sheet capacity for a value-enhancing acquisition."
Together, Cable ONE and NewWave will serve more than 1.2 million PSUs. NewWave has upgraded systems and a high capacity plant, including more than 10,500 network plant miles and more than 3,700 fiber miles. NewWave provides an attractive opportunity for growth in residential Internet and business services revenues due to relatively low high-speed data penetration in its markets.
"It has been my great pleasure to lead the NewWave team these past several years, and I am proud of the hard work of our employees and their many accomplishments," said Phil Spencer, CEO of NewWave. "Over the last four years, we have invested significant capital to upgrade our networks, roll out 100 Mbps Internet service and enhance our business services. We are excited to become a part of the Cable ONE team. We both share a common vision and commitment to bring high-quality products and services to the communities we serve."