International cable-TV company Liberty Global says it is acquiring Cable & Wireless Communications, a London-based telecommunications company with operations in the Caribbean, in a deal worth $5.1bn.
Denver-based Liberty Global is based in Denver, Colorado and is controlled by John Malone, a billionaire who bought 13% in the company through a holding company in March.
Liberty Global purchased the TV3 television station earlier this year and British cable group Virgin Media in 2013. The company also raised its stake in ITV to 9.9% this year.
Mike Fries, CEO of Liberty Global, said: “The acquisition of Cable & Wireless represents a watershed moment for our recently created LiLAC platform. It will add significant scale and management depth to our fast-growing operations in Latin America and the Caribbean, while creating a new regional consumer and B2B powerhouse. Upon completion, the combined business will serve 10 million video, data, voice and mobile subscribers, with leading positions across multiple markets.
“With our long track record of strong operational and financial performance in the region, we are confident that this combination will yield substantial synergies and accelerate our current prospects for the LiLAC Group to low double-digit rebased OCF growth over the medium term. Our high-quality networks and commitment to product innovation will provide the foundation for growth and value creation for both Liberty Global and LiLAC shareholders. Upon closing, the combined LiLAC and CWC businesses will benefit from the broader group’s scale and management expertise.”