International cable operator Liberty Global, which is the parent company of UPC Ireland, has announced it is to expand into the German market with the purchase of Germany’s second-largest cable company Unitymedia.
The deal will see Liberty Global pay some €2 billion for Unitymedia and also assume its net debt of about €1.5 billion in a total consideration of some €3.5 billion.
Unitymedia’s cable footprint passes about 8.8 million homes in Germany, and covers 10 of the 20 largest cities in Germany, including Cologne, Dusseldorf and Frankfurt.
“We are excited about this transaction as it complements our existing European footprint and has significant untapped growth potential in one of the fastest-growing cable markets in Europe,” said Mike Fries, president and chief executive officer of Liberty Global.
“The addition of Unitymedia not only enhances our European presence, but adds significant scale to our global operations, as our footprint, including Unitymedia, will exceed 40 million homes,” he said.
As of the end of September, Liberty Global’s cable networks served some 17 million customers across 14 countries principally located in Europe, Japan, Chile and Australia.
Liberty Global, which is part-owned by US cable pioneer John Malone, was formed from a merger between Malone’s Liberty Media International and European cable operator UnitedGlobalCom in 2005.
Article courtesy of businessandleadership.com