Liberty Global, Private Equity Firm Team for Puerto Rican Deal

ENGLEWOOD: OneLink Communications, which provides cable, broadband and phone services in Puerto Rico, is being acquired by Liberty Global and the private-equity firm Searchlight Capital Partners for $585 million.

Following the acquisition, OneLink Communications will be merged with Liberty Cablevision to create the largest cable company in Puerto Rico, with a combined base of 700,000 homes passed and 480,000 revenue generating units. The merged unit will be 60-percent owned by Liberty Global and 40-percent by Searchlight.

“Consistent with our strategy of consolidating markets within our footprint, this transaction will make us the leading provider of cable services in Puerto Rico, passing approximately 70 percent of the cable homes on the island and adding substantial scale to our existing operation," said Mike Fries, the president and CEO of Liberty Global. "As a leader in innovation in Puerto Rico, particularly in high-speed broadband and HD, we aim to bring that expertise to the OneLink business. On a combined basis, we will have approximately 700,000 homes passed and 480,000 RGUs, generating nearly $300 million in pro forma 2011 revenue. Finally, we are excited about working together with Searchlight and driving value to our respective stakeholders.”

Eric Zinterhofer, co-founder of Searchlight, added, "There is clear strategic logic to this transaction, which will enhance the combined company’s ability to offer high-quality communications services throughout Puerto Rico. Liberty Global is a best-in-class operator, and we look forward to being their partner on this exciting transaction."