NEWS

Cogeco pays $200M US for Connecticut cable provider

Tuesday, Jun 09, 2015

Montreal TV, phone and internet provider expands in U.S. with plans to roll out new services

Montreal-based Cogeco Cable Inc. will expand its U.S. operations with the purchase of cable, internet and phone provider MetroCast Communications for $200 million US.

Cogeco will buy the Connecticut-based company through its wholly owned U.S. subsidiary Atlantic Broadband, which has 224,000 television service customers, making it the 13th-largest cable operator in the U.S.

MetroCast serves 70,000 homes and businesses in eastern Connecticut. The company expects to earn about $45 million in revenue in 2015.

Atlantic Broadband operates in neighbouring states such as Western Pennsylvania and Maryland/Delaware, as well as in Miami Beach and South Carolina.

Atlantic Broadband CEO Richard Shea says the deal presents opportunities for residential and business growth, including rolling out new services such as TiVo. TiVo is an internet-based service that broadcasts content to smartphones, tablets or PCs.

Cogeco, which operates phone, internet and TV services in Ontario and Quebec, expects the deal to close at the end of September.