Cable One To Acquire Fidelity Communications For $525.9M

 | Apr 01, 2019 10:50PM ET

Cable One (NYSE:CABO) recently signed an all-cash deal worth $525.9 million to acquire Fidelity Communications. The deal includes Fidelity’s “data, video and voice business and certain related assets.”

Cable One expects cost synergies of $15 million on an annual basis, within three years of completing the transaction. Additionally, the acquisition may generate tax benefits worth $87 million “on a present value basis.”

Fidelity, which provides services to both residential and business units, has about 114,000 residential and 20,000 business customers. Notably, the company operates in Oklahoma, Arkansas, Texas, Missouri, Illinois and Louisiana.

The acquisition, which is expected to close in fourth-quarter 2019, is anticipated to expand Cable One’s footprint in the non-urban markets. This may help the company boost its market share and grow its residential and business customer base. Notably, Cable One currently has more than 800,000 residential and business customers.

Cable One, Inc. Revenue (TTM)

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