(Reuters) - U.S. cable service provider Cable One Inc (CABO.N) said on Wednesday it would buy privately held rival NewWave Communications for $735 million in cash to expand in non-urban markets.
NewWave is owned by funds affiliated with GTCR LLC, a Chicago-based private equity firm.
Cable One, which has 650,000 customers across 19 U.S. states, said it expects to finance the deal with $650 million in secured loans as well as cash on hand.
NewWave's services reaches nearly 428,000 homes though non-urban areas of Arkansas, Mississippi, Missouri and Texas.
Cable One said the combined company will serve more than 1.2 million primary service units.
The deal, expected to be completed during the second quarter, will generate annual cost synergies of about $24 million and a tax benefit value of about $152 million, Cable One estimated.
J.P. Morgan is Cable One's financial adviser and Cravath, Swaine & Moore LLP is its legal adviser.
Reporting by Laharee Chatterjee; Editing by Savio D'Souza