Private equity firm ABRY Partners will be acquiring U. S. cable operator RCN by paying US$1.2 billion. The move will make the local broadband provider a private firm, as according to the deal ABRY Partners will pay 530 million and presume $730 million in debt.

$15 will be paid by ABRY in cash for each share of RCN.

If the deal gains the affirmation of the shareholder and regulator, it will get completed in the second half of the year.

The metropolitan areas of Boston, Chicago, Washington, Philadelphia and New York falls under RCN's cable television and Internet service network.

Frank G. Louthan IV, an analyst who follows the telecommunications industry for Raymond James & Associates, said, "ABRY has invested in the cable space and telecom for years and years. It's a natural fit for them. It would likely take investment that would lower cash flow in the short term, which investors would not like".

In order to ensure that the company's shareholders get the best value, RCN will shop itself among other buyers for 40 days.

RCN lost $6 million on revenue of $192 million in the third quarter of 2009. A year earlier it witnessed a loss of $15 million on revenue of $187 million.

Aquino told that though, the Internet service is providing a maximum of 20M bps and is being improved with DOCSIS 3.0 technology, the change in the ownership should not influence the customers.