Altice USA to buy Morris Broadband for NC footprint extension
Cable MSO Altice USA (NYSE: ATUS) says it has agreed to acquire Morris Broadband, LLC, which supplies broadband services in North Carolina. The agreement values Morris Broadband at $310 million on a debt-free and cash-free basis. Altice USA will fund the purchase via existing liquidity, with the deal expected to close in the second quarter of this year, subject to certain regulatory approvals and other customary closing conditions.
Morris Broadband provides triple-play services to approximately 36,500 residential and business customers in western North Carolina. Its network passed approximately 89,000 homes at the end of last year. Its markets include Hendersonville, Franklin, Sylva, Nebo, and West Jefferson, with penetration of approximately 35%. Altice USA plans to pair the new assets with those it already operates in North Carolina via Suddenlink.
“We are very excited to extend Altice USA’s footprint into neighboring communities in North Carolina by acquiring the very fast-growing Morris Broadband,” commented Dexter Goei, CEO of Altice USA. “Morris is a perfect fit for Altice as we are accelerating our network expansion with increased investment in edge outs, upgrades of underdeveloped systems, and FTTH deployment to drive customer, revenue and cash flow growth. We look forward to providing our high-quality broadband, video, mobile, and news offerings to thousands of additional homes and businesses, with a great opportunity to further penetrate Morris’s existing homes passed and by expanding more into adjacent areas.”
Morris Broadband generated approximately $13 million in adjusted EBITDA on an annualized basis for the quarter ended December 31, 2020 (Q4 LQA). The purchase price represents a multiple of Morris Broadband’s Q4 LQA adjusted EBITDA of approximately 24.1X before taking into account estimated run-rate synergies. Including the estimated run-rate synergies that Altice USA expects to realize in full within two years of closing the transaction and adjusting for the present value of anticipated tax benefits, the purchase price represents a multiple of projected 2022 adjusted EBITDA of 7.4X.
For related articles, visit the Business Topic Center.
For more information on FTTx technology and suppliers, visit the Lightwave Buyer’s Guide.
To stay abreast of fiber network deployments, subscribe to Lightwave’s Service Providers and Datacom/Data Center newsletters.
Stephen Hardy | Editorial Director and Associate Publisher, Lightwave
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.
You can connect with Stephen on LinkedIn as well as Twitter.