Colorado cable TV magnate John Malone is expanding his international operations with the acquisition of Cablecom Holdings AG, Switzerland’s largest broadband cable operator.
The $2.19 billion cash deal, expected to close in mid-October, solidifies Liberty Global Inc.’s position as the largest cable provider outside the United States, giving it a total of about 17 million video, Internet and phone subscribers.
Denver-based Liberty Global said the purchase would make it the largest broadband cable operator in 11 of its 14 European markets.
It already is the largest in France, Poland, Hungary and the Czech Republic, and the second largest in Norway.
Cablecom, which has more than 2 million video, voice and data subscribers, had previously planned an initial public offering with a price range of about $2.2 billion to $2.7 billion.
The company is owned by a shareholder group led by Apollo Management, TowerBrook Capital Partners and Goldman Sachs affiliates.
“Continued expansion of our footprint in Europe is a core strategic objective,” said Mike Fries, Liberty Global president and chief executive.
“With 80 percent video penetration, limited satellite and data competition, and strong operating cash flow, Cablecom fits perfectly into our long-range growth plans.”
Liberty Global said the acquisition would be financed largely with funds coming from new subordinated debt, a senior note offering and cash.
The company was advised by JPMorgan and UBS for the transaction.
Liberty Global A shares rose 39 cents to $26 in morning trading on the Nasdaq Stock Market.
The company was created in June when shareholders of Englewood-based Liberty Media International Inc. agreed to acquire UnitedGlobalCom Inc., of Denver. UnitedGlobalCom and Liberty Media International are now wholly owned subsidiaries of Liberty Global.
Malone, chairman of Liberty Global, announced the creation of the company in January, when he said he would buy the half of UnitedGlobalCom that he didn’t already own. Shareholders approved that acquisition in June.
Malone also is chief executive of Englewood-based Liberty Media Corp., a holding company with stakes in a wide range of businesses covering cable entertainment and retail networks and interactive services. Among its holdings are the QVC shopping channel and the Encore and STARZ! movie channels. Besides offering broadband Internet access, telephone and television services over cable in Europe, Global also has ownership interests in The Wireless Group.
