Cable One is buying a 45% stake in Mega Broadband Investments Holdings LLC (MBI) from GTCR LLC for $574.1 million in cash, the companies announced yesterday.
The final cash figure may be somewhat different because it will be adjusted for transaction expenses and any new debt incurrences. Cable One will also have the right to buy the remainder of MBI beginning in 2023, with the price based on a multiple of earnings.
The transaction marks a continuation of Cable One’s recent industry investment.
MBI itself is a roll-up of many acquisitions, including Vyve Broadband – the company’s brand — Northland Communications and the broadband assets of Eagle Communications, giving it 15,800 network miles, including over 4,100 fiber route miles.
The wide-ranging company offers broadband and other telecom services to customers in various areas of Alabama, Arkansas, California, Colorado, Georgia, Idaho, Kansas, Louisiana, Nebraska, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Washington and Wyoming.
“This strategic investment in MBI reflects a continuation of our commitment to provide rural America with reliable high-speed internet service,” said Julie Laulis, Cable One president and CEO, in a prepared statement. “MBI has developed an excellent network in geographies complementary to our existing footprint and we are excited to share in its future growth. MBI’s operating model and local-first focus mirrors our own and we are pleased to partner with MBI.”
“This transaction represents the next step of MBI’s ongoing transformation, and I am excited to have the backing of Cable One alongside GTCR,” said Phil Spencer, CEO of MBI, in a prepared statement. “Over the last few years our team has invested significant capital to upgrade our networks, roll out Gigabit internet service, and enhance business services across our footprint. Under our new partnership, we plan to continue making significant investments in our network, our communities, and our employees.”