Cable ONE buying Fidelity Communications
Cable One (NYSE:CABO) has entered into a definitive agreement to acquire Fidelity Communications' data, video and voice business and ...
Cable One (NYSE:CABO) has entered into a definitive agreement to acquire Fidelity Communications' data, video and voice business and certain related assets for $525.9 million in cash, subject to customary post-closing adjustments.
Fidelity Communications has been providing residential and business services throughout Arkansas, Illinois, Louisiana, Missouri, Oklahoma and Texas for nearly 80 years. Fidelity's network passes approximately 190,000 homes and it has approximately 114,000 residential primary service units (PSUs) and 20,000 business PSUs. Fidelity is headquartered in Sullivan, MO.
"We are thrilled to welcome Fidelity associates and customers to the Cable ONE family," said Julie Laulis, president and CEO of Cable ONE. "Fidelity is a fantastic geographical, cultural and business fit. Its operating philosophy and customer-centric focus are similar to our own. That, coupled with future growth opportunities within or near our existing footprint, make this an exciting acquisition."
Fidelity has upgraded systems and a high-capacity plant, including more than 5,100 network plant miles and more than 1,600 fiber route miles. More than 50% of Fidelity's revenues are derived from residential high-speed data and business services.
"For nearly 80 years, Fidelity has provided a superior customer experience and innovative technologies to residential and business customers in our markets, and I am incredibly proud of our employees and all that we have accomplished together," said John Colbert, president of Fidelity Communications. "We are excited to join an organization that shares our values of community, collaboration and excellence. Cable ONE is an exceptional business with dedicated and passionate associates and a strong commitment to the communities they serve. We look forward to working with the Cable ONE team as we bring our two companies together."
The transaction is subject to certain regulatory approvals and other customary closing conditions and is expected to be completed during the fourth quarter of 2019.
Cable ONE bought Clearwave Communications last November.