(Barbados Nation) Cable and Wireless Communications (CWC) has entered into an agreement to acquire Columbus International Inc. for US$1.85b.
If completed, the purchase will make CWC by far the Caribbean’s largest wholesale and retail broadband service provider. CWC currently serves 5.7m residential customers with a suite of fixed telephony, high-speed broadband, television, and mobile services.
The deal will give CWC ownership of Columbus International’s three operating divisions—Columbus Networks’ subsea fibre infrafructure; its Columbus Business Solutions division; and its crown jewel Flow which services 700,000 Caribbean households with triple-play services.
The acquisition of Columbus adds a significant pay-TV operation and so-called next-generation fiber network to Cable & Wireless’s existing businesses, Bentley said.
CWC is funding the deal by paying $707.5 million in cash, issuing 1.5 billion new shares to Columbus investors and placing shares worth nearly 10 per cent of the company on the markets. According to filings with the London Stock Exchange, CWC estimates that the combined entity will be able to achieve recurring annualised pre-tax cost synergies of about $85 million.
