LGI Broadband, a subsidiary of US-based cable colossus Liberty Global, and private equity firm Searchlight Capital Partners have agreed to acquire Puerto Rican cableco OneLink Communications for US$585.25m.
OneLink is currently owned by US private…
LGI Broadband, a subsidiary of US-based cable colossus Liberty Global, and private equity firm Searchlight Capital Partners have agreed to acquire Puerto Rican cableco OneLink Communications for US$585.25m.
OneLink is currently owned by US private equity firms MidOcean Partners and Crestview Partners.
OneLink will be merged with LGI’s existing operation, Liberty Cablevision of Puerto Rico (LCPR), to form the largest cable operator on the island.
Prior to the acquisition of OneLink, Liberty will contribute 100% of its interest in LCPR to a new entity, which Searchlight will contribute cash to. This new entity will in turn buy OneLink for cash consideration.
Liberty will own 60% of the combined entity, while Searchlight will own the remainder.
The transaction is subject to regulatory approval but Liberty expects to close the deal in Q4/2012.
Liberty Global said it will consolidate the business for financial reporting purposes.
“Consistent with our strategy of consolidating markets within our footprint, this transaction will make us the leading provider of cable services in Puerto Rico,” said Liberty Global CEO Mike Fries.
Scotiabank acted as financial advisor to Liberty Global and Searchlight in this transaction.
Kirkland & Ellis served as legal advisor to MidOcean and Crestview.
