Abry partners to acquire RCN for $1.2 billion

RCN, one of the original so-called cable overbuilders to emerge in the mid-1990s, has agreed to be acquired by private equity firm Abry Partners for about $1.2 billion. News of the acquisition has been greeted favorably by investors as the company's shares rose 23 percent.

Under the terms of the deal, RCN investors will get $15 in cash for each RCN share, which is a 22 percent premium to yesterday's closing price. Abry will also assume $669 million of RCN's debt.

Expected to close in the second half of the year, RCN is allowed to solicit other offers through April 14. Selling itself out right now is not a bad idea for RCN. While RCN has been diligently expanding its optical network to serve its residential and business customers, it has not only reported 14 consecutive quarterly net losses but had to shoulder a tough economic slowdown.

For more:
- see the release here
- Bloomberg has this article

Related articles
RCN pours the wideband love on SMBs
RCN Metro: This Ethernet connection goes to 10 Gbps
RCN Metro, OpenCape to build open access network
RCN abandons bid for FiberNet Telecom


Like this story? Subscribe to FierceTelecom!

The Telecom industry is an ever-changing world where big ideas come along daily. Our subscribers rely on FierceTelecom as their must-read source for the latest news, analysis and data on the intersection of telecom and media. Sign up today to get telecom news and updates delivered to your inbox and read on the go.

Suggested Articles

Flume has launched with the goal of providing fast, affordable internet connections to at least 600,000 low-income residents in New York City.

Comcast announced that its Comcast RISE program is providing more than 700 Black-owned businesses support including technology upgrades.

IBM is planning to cull about 10,000 jobs in Europe in order to lower costs ahead of its split into two businesses.