Regional communications services provider Hargray Communications says it has reached an agreement with cable MSO Cable One, Inc. that will see Cable One contribute its Alabama assets to Hargray in exchange for a minority equity interest. The transaction is expected to close this fall pending regulatory approvals.
The assets going to Hargray include Cable One’s system that serves Anniston, AL, and surrounding areas. Hargray already serves neighboring Pell City. Hargray says it will invest in network enhancements in its new market to provide gigabit broadband and premium TV services. Business customers in the system will receive enhanced data, voice, and video services, including hosted unified communications, metro Ethernet, symmetrical and asymmetrical internet, and customized video services, Hargray adds.
“At a time when reliable, high-speed internet access has never been more essential to enable people and communities to connect and thrive, we are pleased to add the Alabama assets of Cable One to our growing portfolio,” commented Michael Gottdenker, Hargray chairman and CEO. “We look forward to building upon Cable One’s network investments to deliver premium communications products and solutions to homes and businesses in Anniston, Jacksonville, Oxford, and the surrounding communities.”
“In the markets we serve, we take seriously our opportunity and obligation to invest in the local community,” added David Armistead, senior vice president of Hargray Communications. “We intend to retain Cable One’s local colleagues and will become involved in the community to deliver the same robust suite of residential and commercial services and exceptional customer support we are known for in nearby Pell City, AL, and across Georgia, Florida, and South Carolina.”
Cable One will join Hargray’s current investment team, headed by The Pritzker Organization. Other investors include Stephens Capital Partners, Redwood Capital Investments, WaveDivision Capital, and company management.
“We believe Hargray, whose values mirror our own, will be an excellent fit for the Anniston community. Hargray will be able to use its regional scale to further invest in the Anniston market while continuing to provide Anniston customers with the latest technological advancements and the highest level of customer care,” said Julie Laulis, Cable One president and CEO. “Additionally, and as a result of this transaction, Cable One will have the opportunity to share in Hargray’s growth while increasing our opportunities for continued investment.”
Hargray has launched an aggressive strategy of fueling expansion via M&A. Recent transaction include purchases of Electronet Broadband Communications (see “Hargray buys Electronet Broadband Communications for Florida fiber network expansion”), Dark Fiber Systems, (see “Hargray announces acquisition of Dark Fiber Systems”), USA Communications’ assets in Alabama, Kings Bay Communications, Inc., and three colocation facilities.
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