Subject to financing and receiving Bahamian and US regulatory approvals, Cable Bahamas Ltd (Cable Bahamas), through its US-based wholly-owned subsidiary Summit Vista Inc, has entered into a purchase and sale agreement with US Metropolitan Telecom, LLC (US Metro) a privately-owned telecommunications service provider based in South Florida. The company is a facilities based telecommunications provider and will be interconnected with Cable Bahamas’ existing fibre-optic network. Cable Bahamas anticipates that the acquisition of US Metro, along with Marco Island Cable and its affiliate NuVu LLC and Summit Broadband, all currently pending regulatory approvals, will provide the necessary platform to facilitate Cable Bahamas’ growth in the telecommunications industry of Florida.
According to President and CEO of Cable Bahamas Anthony Butler, “This acquisition dovetails nicely and is an integral part of the proposed Florida expansion announced just over six weeks ago as these acquisitions are mutually dependent for this strategic expansion. US Metro’s extensive fiber optic network will extend the reach of Cable Bahamas’ existing fibre network from Miami, to the west coast of Florida connecting Marco Island and NuVu’s network and then continuing north through and combining Summit Broadband’s fibre rich network in Orlando, then aggregating back to CBL’s central office in Boca Raton, Florida.”
Mr Butler continued: “US Metro was the first alternative telecommunications company in South west Florida providing competitive services using a 100% fiber-optic cable network against the incumbent phone company. US Metro provides world-class Internet, data and voice communications services to Southwest Florida businesses and to national telecom carriers.”
The size of this transaction is US $24 million and is proposed to be financed through the refinancing of Cable Bahamas’ existing senior credit facilities. The board of directors of Cable Bahamas, based upon the recommendation of a special investment committee, has unanimously approved the proposed transaction. In its consideration of this matter, the Cable Bahamas received advice from its financial advisor, RBC Capital Markets.
This expansion into Florida comes on the heels of Cable Bahamas’ recently-announced decision to expand into the Florida market. Cable Bahamas is optimistic that this additional acquisition fits well into its future strategic business and technological goals.
The transaction is expected to close before year-end, subject to receiving all the required regulatory approvals.