LONDON (Reuters) - Cable & Wireless Communications said it would buy Columbus Intl, a privately-owned fibre-based telecoms provider in the Caribbean, Central America and Andean region, for $1.85 billion to boost its mobile, fixed line, broadband and TV offer.
C&W, which said the agreed deal would extend its presence in the region, said it would place new shares of nearly 10 percent of its capital to help buy the company, which is backed by cable TV billionaire John Malone.
Phil Bentley, C&W’s chief executive, said buying Colombus would deliver a step change in growth and returns.
“Together, we will create the best-in-class quad-play offering in the region, delivered on a superior mobile, fiber and subsea network,” he said.
Colombus, which has about 700,000 residential customers, provide triple-play cable TV, telephony and broadband over its own fiber optic network in the Caribbean.
It also provides backhaul connectivity to 42 countries in the region, as well as capacity and IT services, corporate data solutions and data center services.
Separately on Thursday, C&W said its first-half revenue rose 1 percent to $848 million and its core earnings rose 5 percent to $277 million.
The company, which has operations in Panama and the Caribbean, said it was seeing strong demand for data, and it expected its growth to accelerate in the second half.
Reporting by Paul Sandle; editing by Sarah Young