Cablevision To Buy Bresnan for $1.3 Billion

UPDATE: The deal is now official

(Reuters) – Cablevision Systems Corp (CVC.N) plans to buy Bresnan Communications, majority-owned by private equity firm Providence Equity Partners, for about $1.3 billion, a source familiar with the situation said on Sunday.

The deal is expected to announced on Monday, said the source, who declined to be identified because they were not authorized to speak with the media.

Bresnan, Cablevision and Providence could not be immediately reached for a comment.

Bresnan, which was founded in 1984, provides communications services such as high-speed Internet access, high-definition television, video on demand, and digital telephone service to residential and business customers.

Bresnan serves more than 320,000 customers in Colorado, Montana, Wyoming and Utah, according to its website. The company’s auction follows last year’s death of founder William Bresnan.

Cablevision beat out a competitive field of suitors that included six other bidders in the final round last week, the source said. Other suitors included Suddenlink Communications and media mogul John Malone, said the source.

Providence bought Bresnan in 2003 and began exploring a potential sale of the company in March. Minority stakeholders in Bresnan include Comcast Corp (CMCSA.O) and private-equity firm Quadrangle Group.

UBS AG (UBSN.VX) and Credit Suisse (CSGN.VX) advised the sellers. (Reporting by Jessica Hall, editing by Maureen Bavdek and Marguerita Choy)