New York-based buyout house Avista Capital Partners has bought regional cable operator Knology for around $1.5bn including debt, a take-private deal that will give the firm’s portfolio business WOW increased access to US Midwest markets.
The sale, which represents a premium of around 34 per cent over Knology’s average closing price during the three month period before media reports confirmed the deal, is valued at $750m plus a roughly equal amount of debt. The all-cash transaction was priced at $19.75 per share.
Knology provides cable services to ten markets in the southeastern US and three markets in the midwestern US, while WOW covers Michigan, Illinois, Ohio and Indiana. The combined entity will have more than 800,000 customers, with the potential to reach 2.8 million homes in 13 states.
Credit Suisse, Morgan Stanley, RBC Capital Markets, SunTrust Robinson Humphrey and Bank of Tokyo-Mitsubishi UFJ provided debt financing for the deal.
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