HARGRAY COMMUNICATIONS acquired by CABLE ONE
Context
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 in 2020, is valued in this transaction at an EV/EBITDA multiple of , representing a to the average currently observed in the TMT (Tech, Media, Telecom) sector (13.7x).
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Target
Hargray Communications is a premier regional telecommunications company based in the United States, specializing in the provision of advanced internet, television, and telephone communications services. As an established operator in the Southeast, the company serves residential and business customers across fourteen highly attractive markets in Alabama, Florida, Georgia, and South Carolina. Hargray’s distinctive value proposition lies in its robust, facilities-based network, which delivers gigabit-capable services to approximately 99% of its customer base. The company operates a highly resilient business model, underpinned by sticky customer relationships, with roughly 60% of its total revenues derived from high-margin residential data and B2B services. From a market positioning standpoint, Hargray acts as a regional leader and a formidable challenger to national incumbents, leveraging its deep community ties and superior local service. This robust infrastructure makes the company a highly sought-after platform investment for broader sector consolidation.
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REFERENCES
Valuation range: EV 1b - 4b USD
EBITDA range: 100M - 200M USD
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Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.
Target: hargray communications