Private equity-backed telecoms operator WOW has agreed to acquire US cable operator Knology and take the company private in a deal worth US$1.5bn.
In a statement, the companies said that WOW!, which is controlled by Avista Capital Partners, will buy all…
Private equity-backed telecoms operator WOW has agreed to acquire US cable operator Knology and take the company private in a deal worth US$1.5bn.
In a statement, the companies said that WOW!, which is controlled by Avista Capital Partners, will buy all outstanding Knology shares for US$19.75 per share.
According to the NASDAQ website, Knology has over 37.7m shares outstanding, which would mean WOW’s offer would equate to approximately US$745m.
The total value of the transaction is around US$1.5bn, the companies said. According to the company’s annual results Knology had US$752m of outstanding debt as of 31 December 2011.
Credit Suisse, Morgan Stanley, RBC Capital Markets, SunTrust Robinson Humphrey and Bank of Tokyo-Mitsubishi UFJ are providing fully-committed debt financing for the deal.
The deal is not subject to any financing conditions, but is still subject to regulatory and shareholder approval.
WOW’s business is focused on the states of Illinois, Indiana, Michigan and Ohio, while Knology provides services in the south-east and mid-west of the US.
The combined company will have more than 800,000 customers.
The transaction committee of Knology’s board of directors has BofA Merrill Lynch and Credit Suisse as financial advisers, while Hogan Lovells US LLP is the legal adviser.
The legal adviser for Knology is Alston & Bird LLP.
The financial adviser for WOW! is Morgan Stanley, while its legal adviser is Kirkland & Ellis LLP.
