Cable One is purchasing Missouri-based cable operator Fidelity Communications for $525.9 million in an all cash deal.
Headquartered in Sullivan, Mo., Fidelity serves residential and business customers across greater Arkansas, Illinois, Louisiana, Missouri, Oklahoma, and Texas. The family-owned cable operator provides data, video, and voice services with about 114,000 residential PSUs and 20,000 business PSUs.
Cable One said that more than half of Fidelity’s revenues are generated from residential high-speed data and business services. Fidelity’s network has upgraded systems including more than 1,600 fiber route miles and 5,100 network plant miles, able to deliver top-tier speeds and services.
“We are thrilled to welcome Fidelity associates and customers to the Cable One family,” said Julie Laulis, president and CEO of Cable One, in a statement. “Fidelity is a fantastic geographical, cultural and business fit. Its operating philosophy and customer-centric focus are similar to our own. That, coupled with future growth opportunities within or near our existing footprint, make this an exciting acquisition.”
Cable One expects to realize $15 million in estimated annual run-rate cost synergies within three years of closing, and anticipates estimated tax benefits of about $87 million on a present value basis.
The deal is expected to close in the fourth quarter of 2019, and Cable One said it plans to provide additional information during the company’s first quarter earnings call in May.
“For nearly 80 years, Fidelity has provided a superior customer experience and innovative technologies to residential and business customers in our markets, and I am incredibly proud of our employees and all that we have accomplished together,” said John Colbert, president of Fidelity Communications Co., in a statement. “We are excited to join an organization that shares our values of community, collaboration and excellence.”
