Cogeco Cable, the second-largest cable operator in Ontario and Québec and the fourth largest in Canada, has reached a deal to acquire the Portuguese cable operator Cabovisao-Televisao por Cabo for 464.9 million euros from Cable Satisfaction International (CSII).

Cabovisao provides analog television, high-speed Internet and telephony services to approximately 611,000 revenue-generating units and 820,000 homes passed in Portugal. Approximately 264,000 customers subscribe to Cabovisao's analog television service, 130,000 customers subscribe to the Internet service and 217,000 subscribe to its telephony service. The company's operating revenue was 129.3 million euros for the fiscal year ended December 31, 2005. For Q1 2006, revenue was 34.7 million euros, a 12.6-percent increase on last year.

This acquisition of Portugal’s second-largest cable operator is part of Cogeco’s previously announced growth strategy. "Cabovisao is well positioned in the high-growth cable telecommunications market in Portugal, including the Aveiro, the Lisboa-Palmela, the Caldas and the Alentejo regions,” said Louis Audet, the president and CEO of Cogeco Cable. “Cogeco Cable is pleased with its growth potential and expects to make attractive additions to the services already provided to its customers thanks to its modern distribution infrastructure. In addition, Cogeco Cable will share with Cabovisao its knowledge of the cable distribution industry which it has developed over the last 35 years and which will also foster stability in the ownership and management of that company. Cogeco Cable believes that there will be continued growth in the dynamic telecommunications market in Portugal. This acquisition is consistent with Cogeco Cable's pursuit of external growth opportunities in the past and enables the Corporation to take part in the development of the cable telecommunications sector in Europe.”

Cogeco Cable will finance the acquisition of Cabovisao through an underwritten credit facility of C$900 million over five years committed by Canadian Imperial Bank of Commerce.