Liberty Global, Searchlight To Buy OneLink For $585 Mln. - Update

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6/26/2012 5:44 PM ET

Video and broadband service provider Liberty Global Inc. (LBTYA: Quote, LBTYB, LBTYK) and affiliates of investment firm Searchlight Capital Partners L.P. Tuesday agreed to acquire Puerto Rico-based dba OneLink Communications for an enterprise value of about $585 million, in a deal that will make it one of the biggest cable players.

The sellers in the transaction are private equities MidOcean Partners and Crestview Partners, while Liberty Global on its part will execute the deal through its unit LGI Broadband Operations Inc.

The transaction is expected to close in the fourth quarter 2012, following which Liberty Global will control the newly-formed company and will consolidate the business for reporting purposes.

Liberty Global CEO Mike Fries said, "... 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..."

OneLink Communications, the parent of San Juan Cable LLC, provides cable TV, broadband and telephony services in Puerto Rico. OneLink will be merged with LGI's existing operation, Liberty Cablevision of Puerto Rico LLC.

Upon completion of the transaction, the combined business will be 60 percent-owned by Liberty Global and the remainder by Searchlight.

LBTYA closed Tuesday on the Nasdaq at $47.84, down $0.12 or 0.25%. In after hours, the stock dropped 0.15%.

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by RTT Staff Writer

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