BCI Broadband buys Allegiance Communications
BCI Broadband, a new cable MSO formed by former top executives from Bresnan Communications, said it agreed to buy Allegiance Communications, which operates cable systems in Oklahoma, Kansas, Missouri and Arkansas.
Former Bresnan CEO Jeffrey DeMond and CFO Andrew Kober are leading BCI, which billed itself in Wednesday's announcement as a "next-generation broadband MSO." BCI, which teamed up with a private equity fund backed by Brown Brothers Harriman & Co. on the Allegiance deal, suggested other cable system acquisitions may be in the works.
"[T]he team is acquiring the Allegiance properties as the first transaction in an aggressive growth plan by the company," BCI said.
DeMond and Kober hold the same titles at BCI as they did at Bresnan, which was acquired by Cablevision (NYSE: CVC) in 2010. The MSO said late last year that it is exploring the sale of the former Bresnan systems, which now make up its Optimum West division.
Allegiance counts about 40,000 subscribers. BCI said it will pass about 150,000 homes in the Allegiance footprint.
"The Bresnan management team remains largely intact within BCI, and that makes us extraordinarily well positioned to develop the Allegiance properties to their greatest potential," DeMond said in a prepared statement.
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