Searchlight to Join Liberty Global in Choice Cable TV Deal
December 12, 2014
Searchlight Capital Partners has agreed to co-invest with Liberty Global (NASDAQ: LBTYA, LBTYB, LBTYK) in the $272.5 million acquisition of Choice Cable TV, a cable and broadband services provider in Puerto Rico. As part of the agreement, Choice's operations will merge with Liberty Cablevision of Puerto Rico; Searchlight will own a 40% stake in the combined business, with the rest being claimed by Liberty Global.
The purchase price equates to a 6.1x multiple of Choice's estimated full-year operating cash flow for 2015. Upon closing (expected in the first half of next year), the combined business will reach more than 80% of Puerto Rican homes and generate over $380 million of annual revenue. Choice was backed by Spectrum Equity in 2008.