Atlantic Broadband to Acquire MetroCast Connecticut

MONTREAL -- Today, Atlantic Broadband, a wholly-owned subsidiary of Cogeco Cable Inc. (TSX. CCA) and the 13th largest cable operator in the U.S., has entered into a definitive agreement with MetroCast Communications of Connecticut, LLC (“MetroCast Connecticut”) and its parent Harron Communications, L.P. to purchase substantially all of the assets of MetroCast Connecticut for US$200 million (the “Transaction”). The tax adjusted purchase price, which reflects the tax benefit of amortizing intangible assets in an asset purchase, represents a multiple of approximately 7.9x 2015 expected Adjusted EBITDA of the business being acquired. The purchase price is subject to customary closing adjustments.

MetroCast Connecticut’s network passes close to 70,000 homes and businesses across nine communities in eastern Connecticut including New London, Waterford, East Lyme, Montville, Plainfield, Killingly, Sterling, Griswold, and Putnam. Additionally, MetroCast Connecticut’s system serves approximately 23,000 TV, 22,000 Internet and 8,000 Phone customers with expected 2015 revenue of approximately US$45 million and Adjusted EBITDA of approximately US$21 million.

“With eastern Connecticut’s strong demographics and MetroCast Connecticut’s well-maintained networks, this acquisition brings sizeable residential and business growth opportunities,” said Atlantic Broadband President and Chief Executive Officer, Richard Shea. “Our goal is to deliver the best TV, Internet and Phone services combined with responsive local support to the communities we serve. We look forward to welcoming MetroCast Connecticut’s customers and employees to Atlantic Broadband.”

Atlantic Broadband