ENGLEWOOD, Colo., July 17, 2012 /PRNewswire/ – WOW! Internet, Cable & Phone (WOW!) announced today that it has completed the acquisition of Knology, Inc. (“Knology”).
WOW! is a competitive provider of residential and commercial high-speed Internet, cable television and telephone services whose controlling shareholder is Avista Capital Partners. Knology is a leading provider of interactive communications and entertainment services in ten markets in the southeastern United States and three markets in the midwestern United States.
The acquisition, first announced in April, is an all-cash transaction with WOW! acquiring Knology by merger for $19.75 per share in cash. The total transaction value is approximately $1.5 billion and was approved by Knology shareholders during a special shareholders meeting held on June 26th.
“We’re pleased to have completed this transaction so expeditiously and are excited to operate together as a combined entity. We have the people, network, and operating infrastructure to ensure sustained success. We are honored to welcome Knology employees to the WOW! family and are committed to providing all of our customers with services that meet their needs, at a great value, backed by award-winning customer experiences,” said Colleen Abdoulah, WOW! Chief Executive Officer and Chairwoman of the Board.
Abdoulah will continue in her role as CEO for the company. Steven Cochran is WOW!’s President. Todd Holt, former Knology Chief Financial Officer and President, has been named WOW! CFO reporting to Cochran.
“This combination provides us with the diversification to further develop growth opportunities both residentially and commercially. We are confident taking the best of both companies will create even greater benefits for our team members and our customers. We are thrilled to welcome the Knology employees into WOW!,” said WOW! President Steven Cochran.
WOW! operates in Michigan, Illinois, Ohio and Indiana, while Knology serves the southeastern and midwestern United States. Services provided by the combined entity are available to more than 2.8 million households in 13 states. WOW! now ranks as the nation’s 9th largest cable operator.
In connection with the transaction, Credit Suisse and BofA Merrill Lynch acted as the financial advisors to the Transaction Committee of Knology’s Board of Directors, and Hogan Lovells US LLP acted as its legal advisor. Alston & Bird LLP acted as legal advisor to Knology. Morgan Stanley acted as sole financial advisor and Kirkland & Ellis LLP acted as legal advisor to WOW!. Credit Suisse, Morgan Stanley, RBC Capital Markets, SunTrust Robinson Humphrey and Bank of Tokyo-Mitsubishi UFJ have provided fully committed debt financing in connection with the transaction.