Cable One has entered into a definitive agreement to acquire the remaining 85% equity interests in Hargray Communications, a leading facilities-based regional communications provider. Prior to this transaction, Cable One held a 15% minority stake in the company following a system contribution in late 2020. This transaction is structured on a debt-free and cash-free basis, financed through a combination of existing cash resources, revolving credit facility capacity, and definitive bridge loan commitments. The strategic rationale underpinning this acquisition is highly compelling for the acquirer. It allows Cable One to significantly extend its geographic footprint into the fast-growing Southeastern United States, securing a strategic foothold in highly attractive regional markets. Furthermore, the transaction serves as a foundational platform investment for future organic and inorganic growth, enabling Cable One to capitalize on Hargray’s specialized expertise in fiber network expansion. By integrating Hargray's operations, Cable One intends to drive massive value creation, expecting to realize significant estimated annual run-rate synergies within three years of closing.

HARGRAY COMMUNICATIONS, which reported an EBITDA margin of LOGIN in 2020, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN premium to the average currently observed in the TMT (Tech, Media, Telecom) sector (13.8x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.