Broadband communications and video services provider Altice USA (NYSE: ATUS) signed an agreement to acquire the assets of Morris Broadband, LLC. The transaction will expand Altice USA’s footprint in North Carolina, where it already has a presence with its Suddenlink business.
Altice says the enterprise value is $310 million total for the Morris Broadband business on a debt-free and cash-free basis. Morris Broadband provides high-speed data, video and voice services to approximately 36,500 residential and business customers in western North Carolina. According to Altice, after the acquisition, North Carolina will represent the sixth largest state for Altice, out of its 21 states of operations, in terms of number of residential customers.
Altice USA CEO Dexter Goei called Morris Broadband, “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.”
As part of Altice USA, the company said Morris Broadband will benefit from enhanced scale, operating efficiencies and further investment support at the core of the Altice business model and strategy, including accelerated new home builds.
Morris Broadband generated approximately $13 million in Adjusted EBITDA on an annualized basis for the quarter ended December 31, 2020. Altice USA intends to finance the transaction with available liquidity. The deal is subject to certain regulatory approvals and other customary closing conditions; parties expect it to close in the second quarter of 2021.