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Atlantic Tele-Network acquires US Virgin islands telco

Bnamericas Published: Tuesday, October 06, 2015

US telco Atlantic Tele-Network (ATN) has agreed to acquire Caribbean Assets Holdings – the holding company for the Innovative Group of companies operating cable TV, internet and landline services in the US Virgin Islands from the National Rural Utilities Cooperative Finance Corporation (CFC) for US$145mn.

The acquisition is subject to certain purchase price adjustments, with US $85mn payable in cash and the option to finance the remaining US $60mn of the price with a loan from an affiliate of CFC, the Rural Telephone Finance Cooperative .

ATN would combine its US Virgin Islands brand Choice with Innovative to deliver residential and business telecommunications and media services.

The company expects to complete the transaction in mid-2016.

"While CFC has made substantial investments and improvements in Innovative since taking ownership, the company has been operating at a loss for a number of years," commented ATN CEO Michael Prior .

ATN is also acquiring Innovative's smaller cable TV operations in the British Virgin Islands and St. Maarten as part of the transaction.

For its last fiscal year, ended May 31, 2015 , Innovative had approximately US $100mn in revenues.

ATN expects the combined company to have aggregate annual revenues of around US $110mn and initial EBITDA margins between 20%-25% for the first full year of operations.

In the Caribbean ATN operates wireline and fiber services through its subsidiary companies GT&T (Guyana). In wireless the company has Choice Wireless in the US Virgin Islands, CellOne in Bermuda and Islandcom Wireless in Turks & Caicos.

In the second quarter of 2015, ATN saw revenues rise 8% year-on-year to US$90.3mn.

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