Cable ONE To Acquire Fidelity Communications' Data, Video And Voice Business

(RTTNews) - Cable One, Inc. (CABO) announced Monday a definitive agreement with family-owned cable operator Fidelity Communications Co. to acquire its data, video and voice business and certain related assets for $525.9 million in cash, subject to customary post-closing adjustments. The deal will help Cable One extend its footprint in non-urban markets.

The all-cash transaction is expected to be funded through a combination of cash on hand, revolving credit facility capacity and the proceeds of new indebtedness.

The transaction, expected to be completed during the fourth quarter of 2019, is subject to certain regulatory approvals and other customary closing conditions.

Cable ONE expects to realize $15 million in estimated annual run-rate cost synergies within three years of closing the transaction. The acquisition is also expected to provide estimated tax benefits of approximately $87 million on a present value basis.

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