MONTRÉAL and QUINCY, Mass. – Cogeco Communications Inc. (TSX: CCA) announced today that Atlantic Broadband has completed the acquisition of the broadband systems of WideOpenWest, Inc. (WOW!) located in Columbus and Cleveland, Ohio.
"This acquisition significantly advances our market expansion strategy in the United States," said Philippe Jetté, President and Chief Executive Officer of Cogeco Communications Inc. "We are looking forward to continuing to bring innovative services, competitive pricing, customer-centric support and operational excellence in these markets."
"We are excited to welcome WOW! customers and colleagues to Atlantic Broadband as we continue to make major progress in our growth strategy," said Frank van der Post, President of Atlantic Broadband. "We will work to provide an easy transition for our customers as we integrate operations in the short term and, in the years ahead, we look forward to introducing innovative service enhancements that will ensure our continued leadership in these markets."
With the closing of this transaction, Atlantic Broadband is expanding its activities in Ohio and significantly growing its customer base. The acquired broadband systems passed approximately 688,000 homes and businesses in Cleveland and Columbus and served around 196,000 Internet, 61,000 video and 35,000 telephony customers, as of March 31, 2021.
The purchase price and transaction costs are financed through the issuance of a US$900 million secured Term B loan by Atlantic Broadband and excess cash on hand. The secured Term B loan will mature on September 1, 2028 and has been priced at an annual interest rate of LIBOR + 2.50%.
In the short term, the acquired operations will continue to operate under the WOW! name and trademark and be rebranded following the integration period.