Altice USA To Acquire Morris Broadband To Expand Footprint In North Carolina

Altice USA Inc (NYSE: ATUS) inked an agreement to acquire the assets of Morris Broadband, LLC. The financial terms of the transaction were not disclosed.

• The acquisition has the potential to develop Altice USA's footprint in North Carolina, where it already has a presence with its Suddenlink business, with an implied enterprise valuation of $310 million for the Morris Broadband business on a debt-free and cash-free basis.
• North Carolina will represent the sixth largest state for Altice USA out of its 21 states of operations in terms of the number of residential customers, representing the company's high investment commitment towards the state.
• On an annualized basis, Morris Broadband generated $13 million in EBITDA for the quarter ended December 31, 2020. The purchase price represents a multiple of Morris Broadband's Q4 EBITDA of 24.1x before including estimated run-rate synergies. The purchase price represents a multiple of projected 2022 EBITDA of 7.4x, including the synergies.
• Moorgate Securities was the financial advisor to Morris Broadband in connection with this transaction.
• "We are very excited to extend Altice USA's footprint into neighboring communities in North Carolina by acquiring the very fast-growing Morris Broadband. Morris is a perfect fit for Altice as we are accelerating our network expansion with increased investment in edge-outs, upgrades of underdeveloped systems, and FTTH deployment to drive customer, revenue, and cash flow growth," said Altice USA CEO Dexter Goei.
• Altice USA's closing cash and cash equivalents totaled $278.7 million as of December 31, 2020.
• Price action: ATUS stock was up 0.91% at $33.92 on the last check Monday.