Cable One Inc. has entered into a definitive agreement to acquire the equity interests in Hargray Acquisition Holdings LLC that it does not already own. The equity interests represent approximately 85 percent of Hargray on a fully diluted basis.
Cable One has been a minority investor in Hargray since October 1, 2020, when the company contributed its system serving Anniston, Alabama and surrounding areas to Hargray in exchange for equity interests representing approximately 15 percent of Hargray on a fully diluted basis.
The transaction, which implies a $2.2 billion total enterprise value for 100 percent of the equity interests of Hargray on a debt-free and cash-free basis, will expand Cable One’s presence into the Southeastern United States and enable Cable One to capitalize on Hargray’s experience and expertise in fiber expansion.
Hargray is a leading facilities-based regional communications provider serving residential and business customers in 14 markets across Alabama, Florida, Georgia, and South Carolina. Hargray offers gigabit-capable services to approximately 99 percent of its customers. Approximately 60 percent of Hargray’s total revenues for the 12-month period ended December 31, 2020, were derived from residential data and business services customers.
