Cable One has agreed to acquire 85 percent additional stake in Hargray Acquisition, in a transaction valuing the company at $2.2 billion.

The deal will enable Cable One to expand its presence into the Southeastern U.S. and enable Cable One to capitalize on Hargray’s experience and expertise in fiber expansion.

Hargray is a facilities-based regional communications provider serving residential and business customers in 14 markets across Alabama, Florida, Georgia, and South Carolina.

Hargray offers gigabit-capable services to approximately 99 percent of its customers. Approximately 60 percent of Hargray’s total revenues for the 12-month period ended December 31, 2020 were derived from residential data and business services customers.

Julie Laulis, president and CEO of Cable One, said: “This transaction will serve as a potential platform for organic and inorganic growth in the region as we look to continue to expand our footprint.”

Hargray generated approximately $128 million in Adjusted EBITDA on an annualized basis for the fourth quarter ended December 31, 2020. Hargray’s Q4 net loss was approximately $28 million.

Cable One expects to realize approximately $45 million in estimated annual run-rate synergies within three years of closing the transaction.