Cable One Inc. and Mega Broadband Investments Holdings (MBI) have entered into a definitive agreement under which Cable One will acquire the remaining portion of MBI that it does not already own.
MBI, which operates under the Vyve Broadband brand, provides broadband, fiber connectivity, and video and voice services to the southwest, northwest, and mid-south. It had about 210,000 residential and business data customers and 675,000 passings as of the end of last September.
Cable One currently owns 45% of MBI. The balance of the company is owned by “certain affiliates of GTCR LLC” and MBI management.
The deal is slated to close in the fourth quarter. The purchase price is projected to range between $475 million and $495 million. When MBI becomes a wholly owned subsidiary of Cable One, its total net indebtedness is projected to be between $845 million and $895 million, in the form of long-term loans maturing in November 2027.
“We are excited about the opportunity to acquire full ownership in MBI,” Todd Koetje, Cable One Interim CEO and CFO, said in a prepared statement.
“MBI has developed an excellent network in geographies that will be complementary to our existing footprint, enable us to expand our overall market footprint and enhance our long-term growth prospects. Their operating model and local-first focus is in line with our own operating philosophy and we look forward to combining with them and welcoming their exceptional team of associates to Cable One.”
In May 2022, Cable One said that it had invested $950 million over three years to offer 10G services. The company brands at the time — Sparklight, Fidelity, Hargray, and ValuNet — all benefited from the investment.
