Cogeco has announced that its U.S. subsidiary, Atlantic Broadband, will acquire WideOpenWest (WOW) broadband systems located in Ohio.
The WOW Ohio broadband systems will be purchased for $1.125 billion USD (approximately $1.3 billion CAD).
The company notes that the WOW Ohio broadband systems pass approximately 688,000 homes and businesses in Cleveland and Columbus and serve approximately 196,000 internet, 61,000 video and 35,000 telephone customers.
“The acquisition of WOW’s Ohio broadband systems allows us to add significant scale to our growing and profitable U.S. broadband business,” said Philippe Jetté, the president and CEO of Cogeco Communications, in a statement.
“The acquisition also represents a strong strategic fit for Cogeco Communications as it is complementary to Atlantic Broadband’s existing footprint and capitalizes on its existing platform.”
Cogeco says the acquisition adds scale to its U.S. broadband services segment. Atlantic Broadband’s internet service customers will increase by 38 percent from approximately 511,000 to 707,000.
The carrier notes that with this acquisition, more than half of Cogeco Communications’ revenue will be generated its U.S. business.
The transaction is subject to regulatory approvals along with closing conditions and is expected to close in the first quarter of 2022.