Private equity firm to acquire cable operator RCN, shares soar 23 pct; 4Q earings postponed

Private equity firm to acquire cable operator RCN

HERNDON, Va. — Cable operator RCN Corp. said Friday that it will be acquired by a private equity firm for about $570 million and its shares jumped 23 percent.

Including the assumption of debt, the deal is valued at around $1.2 billion.

An investment fund managed by Abry Partners will purchase the company for $15 in cash per RCN share, which is a 22 percent premium over the stock’s closing price on Thursday.

Shares of RCN, based in Herndon, Va., soared $2.84 to $15.10

The deal is expected to be completed in the second half of the year. RCN is allowed to seek other buyout bids through April 14.

The buyout will be funded by equity from Abry and financing from SunTrust Robinson Humphrey Inc., GE Capital, Societe Generale and others.

A fourth-quarter earnings conference call, originally scheduled for Tuesday, has been postponed.