Classic Communications Inc. has completed its estimated
$300 million acquisition of Buford Television, a midsized MSO with 170,000 subscribers in
Texas, Missouri, Arkansas and Louisiana.
Although terms were not disclosed, industry observers had
estimated the deal's worth at $1,765 per subscriber.
The deal, which was announced in late April, will nearly
double Classic's size to about 360,000 subscribers in Texas, Kansas, Oklahoma,
Missouri, Louisiana, Arkansas, Nebraska, New Mexico and Colorado.
The combined company will pass about 609,000 homes.
"This transaction puts Classic in a position to
continue our consolidation of nonmetropolitan markets and to drive digital services and
high-speed Internet access in those markets," Classic CEO Merritt Belisle said in a
Classic is in the middle of a $79 million upgrade to boost
its systems to 550 megahertz. The Buford systems -- currently at about 330 MHz -- are
expected to be included in that plan.
In a related transaction, Classic also received a $100
million investment from Brera Capital Partners L.P., a New York-based private investment
firm, to help finance the Buford acquisition. As a result, Brera will own, through a
subsidiary, 64.4 percent of Classic.
Daniels & Associates Inc. and Donaldson, Lufkin &
Jenrette Inc. assisted Buford in the transaction.