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Telecoms

Cogeco Communications strikes US$1.4bn deal for MetroCast

The US$1.4bn deal sees Cogeco picking up cable assets in New Hampshire, Maine, Pennsylvania, Maryland and Virginia.

Toronto-listed cable firm Cogeco Communications Inc (CVE:CCA) has struck a US$1.4bn cash deal to expand in the United States, acquiring operations under the MetroCast brand of Harron Communications.

Cogeco picks up a network of 236,000 homes through the deal. The unit is expected to generate around US$230mln of revenue from the unit this year, and the transaction is expected to close in 2018.

"With this acquisition, we are increasing our customer base in attractive markets adjacent to the ones we currently serve," said Louis Audet, Cogeco chief executive.

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