Coudersport, Pa. -- Adelphia Communications Corp. announced
Dec. 23 that it has signed a definitive agreement to buy Verto Communications Inc. in
order to expand in the Scranton, Pa., area.
Adelphia said on Dec. 23 it will issue 3 million shares of
its class A common stock -- worth about $128 million at the Dec. 22 closing price of
$42.56 per share -- and assume about $32 million in liabilities in the deal. Verto, which
has 56,000 subscribers in greater Scranton, will generate about $13.7 million in operating
cash flow on $25.7 million in revenue during the 1999 calendar year. The $160 million
purchase price works out to about $2,800 per subscriber, or 11.5 times cash flow.
Adelphia has about 2.3 million customers, including about
100,000 in the Scranton area after the Verto deal closes.
Weekly digest of streaming and OTT industry news
Thank you for signing up to Multichannel News. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.