Midcontinent Communications said Thursday that it has agreed to purchase systems with about 33,000 customers in Minnesota and Wisconsin from US Cable.
Midcontinent, based in Sioux Falls, S.D., has about 214,000 customers in the Dakotas and Minnesota.
Terms of the deal were not disclosed but sources in the financial community estimated the price was about $120 million, which works out to be about $3,600 per subscriber.
US Cable has been on the block since last year, when Comcast -- which owns a 48% interest in the company - expressed a desire to exit the partnership. US Cable has remaining systems in Missouri, Texas, and Colorado with about 50,000 subscribers that are near to finalizing their own deals with prospective buyers. Those agreements, according to sources familiar with the matter, could close as early as next week.
"We're excited about the opportunity to serve our new customers and become part of these communities," Midcontinent CEO Pat McAdaragh said in a statement. "We believe that these systems are a nice fit for us. The US Cable fiber network is within 100 miles of our fiber network and we plan to connect the two networks, thereby expanding our reach eastward and getting us into the main network operator interconnect location in Minneapolis. "The US Cable team has done an excellent job managing these systems and bringing the latest technology to smaller, rural communities".
The deal is expected to close around Sept. 30.
Waller Capital Partners, LLC acted as exclusive financial advisor to US Cable and RBC Daniels acted as exclusive financial advisor to Midcontinent Media, Inc.