Liberty Latin America entered into a definitive agreement to acquire 87.5% of United Telecommunication Services (UTS), which provides fixed and mobile services to several Caribbean nations. The transaction was made on a cash and debt-free basis, and valued at USD 189 million. The agreement to acquire represents all shares held in UTS by the Government of .
In addition to Curaçao, UTS provides its services to other Caribbean territories such as St. Maarten, St. Martin, Bonaire, St. Barths, St. Eustatius and Saba. The transaction multiplies six times EBITDA (earnings before interest, taxes, depreciation and amortization) of 2018 before the business merger with Cable & Wireless Communications in Curaçao, and the integration in Liberty Latin America’s regional operations.
‘We are excited to welcome UTS to Liberty Latin America,” Liberty Latin America’, CEO Balan Nair said in a press release. ‘By consolidating these operations in Curaçao, we will form the largest full-service converged telecom operator on the island and create a true national champion, bringing world-class connectivity solutions to our customers on both fixed and mobile networks. In addition, through this acquisition, we are expanding our footprint in the region, allowing us to further leverage our operational scale and unique sub-sea network’, he concluded.
UTS provides video, broadband internet, fixed-line telephony and mobile long term evolution services to residential and business customers. As of December 31st, 2018, it recorded 101,000 fixed and 134,000 mobile subscribers, the majority of which were located in Curaçao.