Liberty Global Acquires German Cable Platform

November 13, 2009 World Screen

 ENGLEWOOD: Liberty Global is expanding its portfolio of pay-TV assets, acquiring Germany’s second-largest cable operator, Unitymedia.

 
The platform is the largest cable service in the German states of North Rhine-Westphalia and Hesse. Its footprint passes about 8.8 million homes, covering cities such as Cologne, Dusseldorf and Frankfurt. As at the end of September, the company had 6.4 million RGUs, including 4.5 million analogue and digital cable customers. It is currently owned by a group of stockholders, led by BC Partners and Apollo. The total purchase price including net debt, is approximately 3.5 billion euros. Completion of the transaction is expected to occur in the first half of 2010 and is subject to regulatory approval. 
 
Mike Fries, the president and CEO of Liberty Global, stated, "We are excited about this transaction as it complements our existing European footprint and has significant untapped growth potential in one of the fastest-growing cable markets in Europe. The addition of Unitymedia not only enhances our European presence, but adds significant scale to our global operations, as our footprint, including Unitymedia, will exceed 40 million homes.” 
 
He continued: "Unitymedia fits our strategy of operating best-in-class cable systems, bringing an experienced management team, a significantly upgraded network, and a product suite that is well-positioned to deliver superior value to its customers. We expect that Unitymedia’s growth will be meaningfully accretive to the overall profile of our European business and will benefit from substantial synergies in such areas as network operations and procurement."

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