07/18/2012 10:21 EDT | Updated 09/17/2012 05:12 EDT

Group led by CPPBI acquires U.S. cable provider for US$6.6 billion

ST. LOUIS - The Canada Pension Plan Investment Board has teamed up with a European private equity firm to buy the seventh largest cable operator in the U.S. in a deal worth US$6.6 billion.

CPPIB says it will working with BC Partners to acquire Suddenlink Communications, which is run by Cequel Communications Holdings.

CPPIB and BC Partners will equally own the majority of the company and Suddenlink's management will own the balance.

The deal includes $1.99 billion of total equity to be invested by CPPIB, BC Partners and certain members of Suddenlink management.

It also includes incremental debt of $500 million and the assumption of existing net liabilities of $4.094 billion as of March 31, 2012.

The deal is expected to close in the fourth quarter of this year.

Suddenlink offers television, high-speed Internet and telephony services to over 1.4 million residential and commercial customers, primarily in Texas, West Virginia, North Carolina, Oklahoma, Arkansas and Louisiana.

The company’s network covers 3 million homes.