Cablevision (CVC) shares saw a significant jump on Thursday following news that it will be acquired by Altice.
Altice has announced that it will be buying Cablevision for $34.90 per share in a deal that is worth $17.7 billion. Altice will be buying all of the shares with cash. The deal is subject to regulatory approval, but has already been approved by the majority of CVC shareholders.
“As a family business we are proud to be entrusted by the Dolan family with the ownership of Cablevision and look forward to continuing the pioneering path they have paved for us. The strategy of Altice in the large and highly strategic US market is reinforced with the acquisition of Cablevision,” Patrick Drahi, Founder and President of Altice, said in a statement. “We will be in a stronger position, as in all other markets in which we operate, to deliver the best services, invest in the most advanced technology, and develop innovative products for the benefit of our customers.”
The combination of Cablevision and Altice will make the latter the fourth largest cable provider in the United States. The acquisition also includes CVC’s News 12 Networks, Lightpath business, Newsday Media Group and Cablevision Media Sales.
“We are very excited about our acquisition of Cablevision, which has developed into a pre-eminent cable operator under the steady, long-term ownership of the Dolan Family,” Dexter Goei, CEO of Altice, said in a statement. “This acquisition, our second in the cable sector in the US, is the next step in Altice’s long-term oriented strategy in the US, one of the largest and fastest growing communications markets in the world.”
The acquisition of Cablevision by Altice is expected to be completed sometime during the first half of 2016.
CVC shares were up 15% as of Noon Thursday.
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