Cable & Wireless Communications (CWC) is to expand into the Caribbean and Latin America market, after agreeing to buy privately owned telecoms provider Columbus International for $1.85bn.
The British group, formed in 2010 when it demerged from Cable & Wireless, said it will assume about $1.2bn in net debt from Columbus’s balance sheet, which was $1.17bn in June 2014.
CWC, which reported revenues of $848m in its latest quarter, said it would place new shares of nearly 10% of its capital to help fund the deal.
The acquisition is expected to accelerate C&W’s progress towards its strategic goals as well as earnings in the second year.
"This is a transaction that transforms CWC, providing a step-change in growth and returns. Columbus offers complementary TV, Broadband and B2B capabilities in complementary markets," C&W’s CEO Phil Bentley commented.
"Together, we will create the best-in-class quad-play offering in the region, delivered on a superior mobile, fibre and subsea network.
"This is a transaction that transforms CWC, providing a step-change in growth and returns. Columbus offers complementary TV, Broadband and B2B capabilities in complementary markets.
Columbus, which is backed by cable TV billionaire John Malone and has around 700,000 residential customers, provides triple-play cable TV, telephony and broadband over its own fibre network in the Caribbean., Central America and Andean region.
