Liberty Global and Searchlight to Acquire OneLink
Merger with Existing LGI Operation will Create the Largest Cable Company in
ENGLEWOOD, Colo. -- June 26, 2012
Liberty Global, Inc. (“Liberty Global,” “LGI,” or the “Company”) (NASDAQ:
LBTYA, LBTYB and LBTYK) today announced that its subsidiary, LGI Broadband
Operations, Inc., has entered into an agreement, together with investment
funds affiliated with Searchlight Capital Partners, L.P. (collectively,
“Searchlight”), to acquire 100% of the parent of San Juan Cable, LLC, dba
OneLink Communications (“OneLink”). OneLink will be merged with LGI’s existing
operation, Liberty Cablevision of Puerto Rico LLC (“LCPR”), to form the
largest cable operator on the island. At March 31, 2012, OneLink passed
347,000 homes and served approximately 262,500 revenue generating units
Mike Fries, President and Chief Executive Officer of Liberty Global stated,
“Consistent with our strategy of consolidating markets within our footprint,
this transaction will make us the leading provider of cable services in Puerto
Rico, passing approximately 70% of the cable homes on the island and adding
substantial scale to our existing operation. As a leader in innovation in
Puerto Rico, particularly in high-speed broadband and HD, we aim to bring that
expertise to the OneLink business. On a combined basis, we will have
approximately 700,000 homes passed and 480,000 RGUs, generating nearly $300
million in pro forma 2011 revenue. Finally, we are excited about working
together with Searchlight and driving value to our respective stakeholders.”
Eric Zinterhofer, co-founder of Searchlight said, "There is clear strategic
logic to this transaction, which will enhance the combined company's ability
to offer high-quality communications services throughout Puerto Rico. Liberty
Global is a best-in-class operator, and we look forward to being their partner
on this exciting transaction."
This transaction values OneLink at an enterprise value, before transaction
costs, of approximately $585 million. This equates to a multiple of
approximately 6.3 times our estimate of OneLink’s 2012 operating cash flow, as
customarily defined by Liberty Global and adjusted for the projected annual
impact of synergies following full integration. Prior to the acquisition of
OneLink, we will contribute our 100% interest in LCPR, and Searchlight will
contribute cash to a newly formed entity. This new entity will in turn acquire
OneLink for cash consideration. Upon completion of the transaction, the
combined business will be 60%-owned by Liberty Global and 40%-owned by
The transaction is subject to customary closing conditions including
regulatory approval, and is expected to close in the fourth quarter of 2012.
Upon closing, Liberty Global will control the newly-formed company and will
consolidate the business for financial reporting purposes.
Scotiabank acted as financial advisor to Liberty Global and Searchlight in
This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including the
anticipated timing of closing the transaction, our estimate of
post-acquisition synergies, the impact of the transaction on our operations
and financial performance, and other information and statements that are not
historical fact. These forward-looking statements involve certain risks and
uncertainties that could cause actual results to differ materially from those
expressed or implied by these statements. These risks and uncertainties
include the receipt and timing of necessary regulatory approval, OneLink’s
ability to continue financial and operational growth at historic levels, the
Company’s ability to successfully operate and integrate the OneLink operation
and realize estimated synergies, continued use by subscribers and potential
subscribers of OneLink’s services, the Company’s ability to achieve expected
operational efficiencies and economies of scale, as well as other factors
detailed from time to time in the Company's filings with the Securities and
Exchange Commission including our most recently filed Forms 10-K and 10-Q.
These forward-looking statements speak only as of the date of this release.
The Company expressly disclaims any obligation or undertaking to disseminate
any updates or revisions to any forward-looking statement contained herein to
reflect any change in the Company's expectations with regard thereto or any
change in events, conditions or circumstances on which any such statement is
About Liberty Global, Inc.
Liberty Global is the leading international cable company, with operations in
13 countries. We connect people to the digital world and enable them to
discover and experience its endless possibilities. Our market-leading
television, broadband internet, and telephony services are provided through
next-generation networks and innovative technology platforms that connect 20
million customers who subscribe to 33 million services as of March 31, 2012.
Liberty Global’s consumer brands include UPC, Unitymedia, Kabel BW, Telenet,
and VTR. Our operations also include Chellomedia, our content division, UPC
Business, our commercial services division and Liberty Global Ventures, our
investment fund. For more information, please visit www.lgi.com.
About Searchlight Capital Partners, L.P.
Searchlight Capital Partners, L.P. (“Searchlight Capital Partners”) is a
private investment firm founded in 2010 by senior partners formerly with
industry leading investment management firms. Searchlight Capital Partners
currently manages over $860 million, invests in a wide range of industries in
North America and Europe, and has offices in New York, London and Toronto. For
more information, please visit www.searchlightcap.com.
^1 All homes passed and RGU figures are as of March 31, 2012. LCPR figures are
based on Liberty Global subscriber definitions and OneLink homes passed and
RGUs are based on information provided to us by OneLink.
Christopher Noyes, +1 303-220-6693
Oskar Nooij, +1 303-220-4218
Hanne Wolf, +1 303-220-6678
Bert Holtkamp, +31 20 778 9800
Steven Goldberg, +1 646-805-2027
David Millar, +1 646-805-2009
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