Liberty Global & Searchlight to Acquire Puerto Rican Cable Company Choice

December 10, 2014 World Screen Top Stories

DENVER: Liberty Global, together with investment funds affiliated with Searchlight Capital Partners, is acquiring Choice Cable TV, the second-largest cable and broadband services provider in Puerto Rico.

Liberty Global has entered into an agreement to purchase 100 percent of Choice's parent company. Choice’s operations will be combined with Liberty Cablevision of Puerto Rico and the combined business, which will be 60-percent owned by Liberty Global and 40-percent owned by Searchlight, will be the largest cable operator on the island.

As of August 31, 2014, Choice’s network passed approximately 345,000 homes and served approximately 154,000 revenue-generating units. The transaction values Choice at an enterprise value, before transaction costs, of approximately $272.5 million.

Mike Fries, the CEO of Liberty Global, stated, “The Choice transaction will build upon our 2012 acquisition of OneLink and will complete cable consolidation on the island of Puerto Rico. Going forward, our market-leading bundles and commitment to network investment and innovation will meaningfully enhance the products and services available to Choice customers. Upon completion, our network will reach over 80 percent of Puerto Rican homes, and the combined business will serve more than 700,000 RGUs and generate over $380 million of annual revenue. Additionally, this will be the first new asset in our anticipated tracking stock for our businesses in Latin America and the Caribbean.”

Eric Zinterhofer, co-founder of Searchlight, said, “We are excited about the opportunity to bring next-generation video capability and enhanced broadband services to Choice’s customers. Furthermore, through the creation of an island-wide cable operator, there are significant opportunities to drive scale benefits and develop incremental residential and commercial business opportunities in Puerto Rico.”