Cable One to Acquire Fidelity Communications, for $525.9M

cableoneCable One, Inc. (NYSE: CABO), a broadband communications provider, is to acquire Fidelity Communications Co., a Sullivan, Missouri-based family-owned cable operator, for $525.9m.

The acquisition, which is subject to customary post-closing adjustments, aims to extend Cable One’s footprint in non-urban markets.

Led by John Colbert, President, Fidelity Communications Co. is a family-owned cable operator that has been providing residential and business services to customers throughout greater Arkansas, Illinois, Louisiana, Missouri, Oklahoma and Texas for nearly 80 years. Its network passes approximately 190,000 homes and it has approximately 114,000 residential primary service units (“PSUs”) and 20,000 business PSUs.
Fidelity generated an estimated $45m in last quarter annualized Adjusted EBITDA for the fourth quarter of 2018.

Led by Julie Laulis, President and CEO, Cable One is a broadband communications provider serving more than 800,000 residential and business customers in 21 states. It provides consumers with a wide array of connectivity and entertainment services, including high-speed internet and advanced Wi-Fi solutions, cable television and phone service.
Cable One Business provides scalable and cost-effective products for businesses ranging in size from small to mid-market, in addition to enterprise, wholesale and carrier customers.

The company expects to realize $15m in estimated annual run-rate cost synergies within three years of closing the transaction. The acquisition is also expected to provide estimated tax benefits of approximately $87m on a present value basis.



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