ATN Closes Acquisition of Innovative Group of Companies
July 01 2016 - 3:30PM
ATN (Nasdaq:ATNI) announced today that it has closed its
acquisition of Caribbean Asset Holdings LLC, the holding company
for the Innovative group of companies operating cable TV, Internet
and landline services primarily in the U.S. Virgin Islands
("Innovative") from the National Rural Utilities Cooperative
Finance Corporation ("CFC").
ATN acquired the Innovative operations for a purchase price of
approximately $145 million, subject to certain purchase price
adjustments, with $85 million payable in cash and the remaining $60
million of the purchase price financed with a loan from the Rural
Telephone Finance Cooperative, an affiliate of CFC. As part
of the transaction, ATN also acquired Innovative’s smaller cable TV
operations in the British Virgin Islands and St. Maarten.
Announced in October 2015, the purchase of Innovative allows ATN
to deliver a full range of telecommunications and media services to
residential and business subscribers. The Company intends to
combine the Innovative operations with its current wireless
operations in the U.S. Virgin Islands. Based on current visibility,
ATN expects the combined company to have aggregate annual revenues
of approximately $100-110 million, and initial EBITDA margins of
approximately 20% for the first full year of operations, excluding
one-time integration and transactional expenses.
“Over the past 16 years of operations in the U.S. Virgin
Islands, we have gotten to know the market well, and we see the
potential to create long term value by bringing Innovative, a
well-established local company with significant network
investments, into our broader operations,” said ATN Chief Executive
Officer, Michael Prior. “We will now have the scale to really make
a difference for both business and residential customers.
Doing so requires careful attention to quality of service and a
sustained program of investment in technology and people. We will
offer comprehensive and enhanced communications and media services
to business and residential customers in the Virgin Islands, while
continuing to deliver the customer friendly experience for which
Choice is known. With a great local team, significant investment
capability and decades of operational telecommunications experience
in this region, we are confident in our ability to successfully
integrate the companies and bring value to customers and the
community as a whole.”
Q Advisors, LLC served as financial advisor to ATN, and
Mintz Levin Cohn Ferris Glovsky and Popeo, PC and Wilkinson Barker
Knauer, LLP acted as legal counsel.
About ATN
ATN (Nasdaq:ATNI), headquartered in Beverly,
Massachusetts, provides telecommunications services to rural, niche
and other under-served markets and geographies in the United
States, Bermuda and the Caribbean and owns and operates solar power
systems in select locations in the United States. Through our
operating subsidiaries, we (i) provide both wireless and wireline
connectivity to residential and business customers, including a
range of mobile wireless solutions, local exchange services and
broadband internet services, (ii) provide distributed solar
electric power to corporate, utility and municipal customers and
(iii) are the owner and operator of terrestrial and submarine fiber
optic transport systems in the United States and the Caribbean,
respectively. For more information, please visit www.atni.com
Cautionary Language Concerning Forward Looking
Statements
This press release contains forward-looking statements relating
to, among other matters, our future financial performance and
results of operations; the competitive environment in our key
markets, demand for our services and industry trends; the outcome
of regulatory matters; the pace of our network expansion and
improvement, including our level of estimated future capital
expenditures and our realization of the benefits of these
investments; and management's plans and strategy for the future.
These forward-looking statements are based on estimates,
projections, beliefs, and assumptions and are not guarantees of
future events or results. Actual future events and results could
differ materially from the events and results indicated in these
statements as a result of many factors, including, among others,
(i) the performance of the acquired business; (ii) our ability to
operate in a new industry; (iii) our ability to integrate the new
business into our current operations; (iv) increased competition;
(v) changes in laws and government regulations affecting the
acquired business; and the risk factors set forth in our Annual
Report on Form 10-K for the year ended December 31, 2015, filed
with the SEC on February 29, 2016 and the other reports we file
from time to time with the SEC. The information set forth in this
news release speaks only as of the date hereof, and ATN disclaims
any intention or obligation to update any forward-looking
statements as a result of developments occurring after the date of
this news release.
CONTACT: ATN International, Inc.
Michael T. Prior
Chief Executive Officer
978-619-1300
Justin D. Benincasa
Chief Financial Officer
978-619-1300
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