Cable One Closes $2.2 Billion Hargray Deal

Cable One
(Image credit: Cable One)

Cable One said it has completed the purchase of the remaining 85% interest in Hargray Communications it didn’t already own, adding about 14 communities in four Southern states to its portfolio.

Cable One agreed to the deal, valued at about $2.2 billion, in February. The transaction built on an earlier deal where Cable One swapped its system in Anniston, Alabama for a 15% stake in the cable and telecom operator. 

According to Cable One, Hargray has about 125,000 residential and business customers in 14 markets across Alabama, Florida, Georgia and South Carolina and offers 1-Gigabit-per-second-capable services to about 99% of its customer base, In keeping with Cable One’s focus on broadband, the company said that about 60% of Hargray’s total revenues for the 12-month period ended Dec. 31 were derived from residential data and business services customers.

“We look forward to expanding our footprint into high-quality markets in Florida, Georgia and South Carolina, as well as reentering the Alabama market,” Cable One CEO Julie Laulis said in a press release. “The Hargray team has built a reputation of providing superior service and customer support to residential and business customers in these areas and we are excited to further build upon that legacy. I am thrilled to welcome our new Hargray associates to Cable One as we work together toward our shared focus of connecting customers and communities to what matters most.”

The deal is the sixth purchase for Cable One since 2017, when it bought NewWave Communications for $735 million. 

“It has been my privilege to serve as CEO of Hargray for the last 14 years as we have pursued our purpose of empowering people and communities to connect and thrive,” Hargray chairman and CEO Michael Gottdenker in a press release. “I am confident that under Cable One’s ownership we will continue to pursue this purpose for our colleagues, customers and the communities we serve.”

Mike Farrell is senior content producer, finance for Multichannel News/B+C, covering finance, operations and M&A at cable operators and networks across the industry. He joined Multichannel News in September 1998 and has written about major deals and top players in the business ever since. He also writes the On The Money blog, offering deeper dives into a wide variety of topics including, retransmission consent, regional sports networks,and streaming video. In 2015 he won the Jesse H. Neal Award for Best Profile, an in-depth look at the Syfy Network’s Sharknado franchise and its impact on the industry.