Zito Media, the Coudersport, Pa.-based cable company headed by James Rigas, said Monday that it has agreed to purchase cable systems in five states from Galaxy Cable for an undisclosed sum.
Zito has about 23,000 customers in Pennsylvania, Kentucky, North Carolina, Tennessee, Ohio and West Virginia. The Galaxy Cable systems pass about 55,000 homes and have 19,000 revenue generating units in Kentucky, Illinois, Nebraska, Kansas and Texas.
New York-based cable investment banker Waller Capital Corp. served as Galaxy Cable's exclusive financial adviser in the transaction. The deal is expected to close within the next 90 to 120 days.
Galaxy, which emerged from Chapter 11 bankruptcy in 2002, began an initiative to sell off its then-80,000 subscribers in 2003. The Zito transaction was the last Galaxy property to be sold.
Rigas formed Zito Media in 2006, after his father and brother - former Adelphia Communications chairman John Rigas and former Adelphia chief financial officer Tim Rigas - were convicted on fraud and conspiracy charges. James Rigas, who was not charged or indicted, was awarded about 5,000 former Adelphia customers in the Coudersport area - Adelphia's former headquarters - and formed Zito. Adelphia went bankrupt in 2002 and was sold to Comcast and Time Warner Cable in 2005.
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