Liberty Global’s Polish unit has struck a deal to acquire the country’s third largest cable operator Multimedia Polska in an all cash transaction.
The agreement values Multimedia at PLN3 billion (EUR690 million), with the final price subject to potential downward adjustments based on the operational and financial performance of Multimedia prior to closing. The price equates to a multiple of 6.2 times Multimedia’s 2015 full-year adjusted EBITDA when adjusted for PLN124 million of projected annual synergies.
The acquisition will be financed through a mix of debt and cash on hand.
The deal excludes Multimedia’s insurance, gas and energy operations, which will be kept by the existing shareholders. The purchase, subject to regulatory approval, is expected to close within the next 12 months.
Taking over Multimedia Polska will give UPC Poland four million passed homes and businesses. As of June 30, UPC Poland passed 3.1 million homes, or around 20% of total households in Poland, serving 1.4 million unique customers who subscribed to 2.9 million cable subscription services. At the end of the second quarter of 2016, Multimedia passed 1.6 million homes mainly through its cable network, serving 832,000 customers who subscribed to 1.4 million subscription services consisting of 643,000 video, 491,000 broadband and 241,000 telephony RGUs. In addition, Multimedia had 54,000 mobile subscribers. Credit Suisse International acted as financial advisor to Liberty Global.
Mike Fries, CEO of Liberty Global, said, “This acquisition will significantly increase our scale in Poland, where we are already the largest cable operator. It will also enhance our ability to invest in cutting-edge products and services for Polish consumers and businesses that will help drive organic growth across our enlarged footprint of over four million premises. Upon closing of the transaction, we will begin upgrading the Multimedia network, after which Multimedia’s customers will be able to enjoy superfast broadband speeds and our next- generation video service Horizon TV.”
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19th July 2019