In Latest Deal, Adelphia to Buy FrontierVision

Adelphia Communications Corp., one of the nation’s largest cable-television companies, said Tuesday it agreed to buy FrontierVision Partners for about $1 billion in cash and stock, its third acquisition deal in three months.

Adelphia and other large cable companies are buying smaller rivals to gain customers and deliver programming more efficiently.

The purchase of FrontierVision would add 702,000 cable subscribers to Adelphia’s base of 2.36 million and bring Adelphia into the Ohio-Kentucky market for the first time.

About half of privately held FrontierVision’s customers live in the New England and Virginia area where Adelphia has cable systems.

Adelphia, based in the north-central Pennsylvania town of Coudersport, would pay $550 million in cash and 7 million shares for Denver-based FrontierVision and assume about $1.1 billion in debt. The deal is expected to close in the third quarter. Adelphia plans to sell $750 million of convertible preferred and Class A stock to the public and Chairman John Rigas’ family before the deal closes.

Adelphia would pay roughly $3,000 for each of FrontierVision’s subscribers, or within the industry average of between $2,500 and $3,500 depending on the condition and location of the cable systems.

In January, Adelphia agreed to buy FPL Group Inc.’s interest in a Florida cable partnership, a month after buying Verto Communications Inc. of Pennsylvania. It also acquired cable systems in Virginia and Connecticut from Marcus Cable Co. last year for $150 million.

Adelphia, along with billionaire Paul Allen’s Charter Communications Corp. and Comcast Corp., have been among the most active cable companies in acquiring systems. Charter Communications has announced four purchases this year.

Adelphia’s stock fell $1.38 to close at $60.25 on Nasdaq.