Despite already currently ranking as the United States’ seventh-largest cable company, Phoenix-based Cable ONE announced the completion of their $735 million, all-cash acquisition of fellow cable-operator NewWave Communications—as of May 1, 2017.
The deal, which was agreed to in principle on January 18, will allow Cable ONE to expand their current customer base of more than 800,000 customers past the one-million mark, while also spreading their coverage outwards into additional, non-metropolitan markets of Arkansas, Illinois, Indiana, Louisiana, Mississippi, Texas, and Missouri (where NewWave’s headquarters are based, in Sikeston), that had been previously outside of the service area.
While news of one well-known high speed data service provider purchasing another smaller company isn’t anything earthshattering in its own regard, it was Cable ONE’s willingness and ability to complete the deal using all cash that drew attention globally. The company, in a prepared statement, did indeed confirm that the deal was financed through the use of senior-secured loans and cash on hand.
This newest acquisition falls directly in line with Cable ONE’s company-wide, vocal insistence on escalating their presence in rural areas that they felt they were previously underserving.
CEO and President of Cable ONE, Julie Laulis, released a statement praising the merger as “extremely positive” for all those involved—customers, associates, and shareholders alike. After all, what is not to like about the company increasing their current service reach to 21 states and more than 1.2 million primary customers? Take into account NewWave’s 30,000+ business subscribers and more than 420,000 residential passings as well, and the expansion blueprint becomes even simpler to follow.
It has yet to be seen just how exactly the company’s growth is managed moving forward, but if nothing else, Cable ONE is trying to prove that the key to traversing the bustling ocean of business opportunity is by riding a NewWave.