Altice (ATUS) Completes Buyout of Morris Broadband for $310M
Altice USA, Inc. ATUS has completed the acquisition of Morris Broadband, LLC for an enterprise value of $310 million.
Headquartered in Long Island City, NY, Altice is one of the largest broadband communications and video services providers in the United States. It is a subsidiary of Next Alt. S.a.r.l.
Altice offers broadband, video, proprietary content and advertising services to more than 5 million residential and business customers across 21 states through its Optimum and Suddenlink brands. The company financed this transaction with available liquidity.
On Mar 1, 2021, Altice announced that it inked an agreement to acquire the assets of Morris Broadband. Morris Broadband is a fast-growing broadband communications services company that provides high-speed data, video and voice services to almost 36,500 customers in western North Carolina.
The acquisition expands Altice’s footprint in North Carolina where it already has presence with its Suddenlink business. This deal makes North Carolina the sixth largest state for Altice in terms of the number of customers. Also, it shows the company’s commitment to invest significantly in technology and infrastructure in the region.
The buyout allows Altice to benefit from greater scale, operating efficiency and additional investments that are at the core of its business strategy. The company now intends to provide its Optimum-branded broadband, video, voice and news offerings to more customers.
Altice is focused on accelerating its network expansion, along with market penetration, for long-term sustainable growth.
The company’s shares have gained 36.1% in the past year compared with 65.4% growth of the industry.
The stock currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader industry are Plantronics PLT, Ubiquiti UI and Cambium Networks CMBM, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Plantronics delivered a trailing four-quarter earnings surprise of 560.4%, on average.
Ubiquiti delivered a trailing four-quarter earnings surprise of 37.1%, on average.
Cambium Networks delivered a trailing four-quarter earnings surprise of 128%, on average.
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