Cable Bahamas acquires two more companies
Published: Sep 30, 2013
Cable Bahamas Ltd. has completed the acquisitions of Marco Island Cable (MIC) and NuVu LLC (Nu Vu), bringing to its plan to acquire four U.S. telecoms companies just one company away from completion.
The acquisition of the two companies came on September 20, 2013, following the successful completion of its senior credit facility refinancing. Still outstanding is the acquisition of Summit Broadband.
These latest acquisitions are expected to strengthen Cable Bahamas’ financial position, allowing it to create economies of scale it could no longer achieve in The Bahamas.
The company said it will begin immediately to integrate its new Florida operations and take advantage of the existing operational efficiencies and synergies.
The total cash consideration paid by Cable Bahamas to acquire MIC and Nu Vu was $10.1 million and $12.6 million respectively. The purchase was financed entirely with funds provided under the senior credit facility.
MIC and Nu Vu provide digital cable television, broadband Internet and telephony services in Southwest Florida, one of the fastest growing and prosperous regions in North America.
Cable Bahamas said the acquisitions will have an “immediate positive impact on digital, broadband and telephony subscriber results by an increase of 40 percent, 20 percent and 22 percent respectively.”
The operating region of U.S. Metro, MIC and Nu Vu has a population in excess of one million; the average household expenditures are in excess of $50,000; and the median household income exceeds $45,000.
The company suggested that the “growing and thriving economy of this region is well positioned for significant growth for years to come” and the “strategic positioning” of Cable Bahamas in this part of Florida will allow it to take advantage of both the existing economy as well as the future growth potential as the economy improves.
Anthony Butler, CEO of Cable Bahamas said: “This is a major step forward for our company. The combination of Marco Island Cable and Nu Vu together with U.S. Metropolitan, which was acquired three weeks ago, creates a powerful platform for innovation and growth in Southwest Florida.
“Together, our Bahamian and Florida operations create the opportunity for Cable Bahamas to have access to over 500,000 homes, and we intend to capitalize on the growth opportunity, both organic and by further acquisitions, to bring consumers the most advanced broadband and digital TV and telephony products available.”
Butler also noted that Cable Bahamas’ growth strategy was given overwhelming shareholder support and stated that, “Our current phase of acquisitions will be concluded in approximately three weeks with the final link of our Florida plan, the acquisition of Summit Broadband in Orlando. Summit plays a pivotal role in our strategy as it is designed to be our network core for the Florida operations. The strategic acquisition and expansion of reputable, local entities will drive business and consumer choice while delivering the highest quality end-product to a market.”
U.S. Metro’s current headquarters in Bonita Springs will become the Southwest Florida headquarters for Cable Bahamas’ U.S. subsidiaries.