Liberty Global and Searchlight to Acquire OneLink; Transaction Valued at $585M
Liberty Global, Inc. (NASDAQ: LBTYA) today announced that its subsidiary, LGI Broadband Operations, Inc., has entered into an agreement, together with investment funds affiliated with Searchlight Capital Partners, L.P., to acquire 100% of the parent of San Juan Cable, LLC, dba OneLink Communications.
OneLink will be merged with LGI's existing operation, Liberty Cablevision of Puerto Rico LLC (“LCPR”), to form the largest cable operator on the island. At March 31, 2012, OneLink passed 347,000 homes and served approximately 262,500 revenue generating units (RGUs).1
This transaction values OneLink at an enterprise value, before transaction costs, of approximately $585 million. This equates to a multiple of approximately 6.3 times our estimate of OneLink's 2012 operating cash flow, as customarily defined by Liberty Global and adjusted for the projected annual impact of synergies following full integration. Prior to the acquisition of OneLink, we will contribute our 100% interest in LCPR, and Searchlight will contribute cash to a newly formed entity. This new entity will in turn acquire OneLink for cash consideration. Upon completion of the transaction, the combined business will be 60%-owned by Liberty Global and 40%-owned by Searchlight.
The transaction is subject to customary closing conditions including regulatory approval, and is expected to close in the fourth quarter of 2012. Upon closing, Liberty Global will control the newly-formed company and will consolidate the business for financial reporting purposes.
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