Suddenlink announces Northland acquisition
Published 7:17 pm Thursday, October 3, 2013
More than 12,000 Northland Communications customers in East Texas will have their service taken over by Suddenlink Communications next year.
Suddenlink announced Thursday that it signed a definitive agreement to acquire certain Texas cable systems from Northland Communications.
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The Northland cable systems involved in the transaction serve more than 12,000 residential and nearly 300 commercial customers, representing more than 18,700 primary service units or PSUs on a combined basis. The Northland systems operate in and around Gun Barrel City, Flint and New Caney, which is in the Houston area.
Sean Hogue, vice president of operations for Northland, said he didn’t expect the Northland customers to experience any changes in service before the transaction goes into effect during the first three months of next year.
“I think it will be a smooth transaction,” he said. “Suddenlink is a good company.”
Hogue said negotiations on the deal began over the summer and the acquisition made “good strategic sense for both companies.”
Neither Hogue nor Pete Abel, senior vice president, corporate communications for Suddenlink, could say how many Smith County customers would be affected.
Abel said it was premature to talk about any possible changes in customer’s service.
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“Our track record speaks for itself,” he said. “Whenever we come into a community, we look to enhance services to improve the customer experience.”
Suddenlink expects to close the acquisition in the first quarter of 2014, subject to customary closing conditions, including receipt of required regulatory approvals. The purchase price was not disclosed.
After the acquisition closes, Suddenlink officials said there is an opportunity to interconnect the Northland systems with nearby Suddenlink systems in Terrell, Tyler and Kingwood, respectively.
RBC Capital Markets served as the exclusive M&A advisor to Northland in the transaction.
Suddenlink is the seventh largest cable operator in the U.S., supporting the information, communication and entertainment demands of about 1.4 million residential and commercial customers in Arkansas, Louisiana, North Carolina, Oklahoma, Texas and West Virginia.
Northland Cable Television began operations in 1981 and is a full-service communications provider, offering video, Internet and telephone services. With its headquarters in Seattle, Northland operates smaller-market cable systems in Alabama, California, Georgia, Idaho, North Carolina, South Carolina, Texas and Washington.