Liberty Global Buying Multimedia Polska

Liberty Global (NASDAQ:LBTYA) subsidiary UPC Poland has entered into a definitive agreement to acquire the cable business of Multimedia ...

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Liberty Global (NASDAQ:LBTYA) subsidiary UPC Poland has entered into a definitive agreement to acquire the cable business of Multimedia Polska S.A., the third-largest cable operator in Poland, in an all cash transaction. Multimedia Polska is being valued at approximately $760 million, with the final purchase price subject to potential downward adjustments for the operational and financial performance of Multimedia Polska prior to closing.

The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close within the next 12 months.

Mike Fries, CEO of Liberty Global, said, "This acquisition will significantly increase our scale in Poland, where we are already the largest cable operator. It will also enhance our ability to invest in cutting-edge products and services for Polish consumers and businesses that will help drive organic growth across our enlarged footprint of over 4 million premises. Upon closing of the transaction, we will begin upgrading the Multimedia network, after which Multimedia's customers will be able to enjoy superfast broadband speeds and our next-generation video service Horizon TV."

As of June 30, UPC Poland passed 3.1 million homes, or around 20% of total households in Poland, serving 1.4 million unique customers who subscribed to 2.9 million cable subscription services. At the end of the second quarter of 2016, Multimedia Polska passed 1.6 million homes, mainly through its HFC cable network, serving 832,000 unique customers who subscribed to 1.4 million subscription services consisting of 643,000 video, 491,000 broadband and 241,000 telephony RGUs. In addition, Multimedia Polska had 54,000 mobile subscribers at June 30.

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