Knology Seeing Orange in Cerritos5/24/2004 9:45 AM Eastern
Knology Inc. said Monday that it has found a buyer for its system in Cerritos, Calif.
Orange Broadband Inc. -- a Charlotte, N.C.-based operator headed by former Carolina Broadband CEO Bill Schuler -- will pay $14.8 million in cash, subject to customary closing adjustments, for the 8,000-subscriber system.
Knology bought the system in December 2003 as part of a larger deal with Verizon Media Ventures Inc. in which the company acquired systems in Pinellas County, Fla., with about 53,000 subscribers.
“We are pleased to have found a solid buyer for the Cerritos property, as our focus continues to be on integrating the Pinellas County property into Knology’s operations,” CEO Rodger L. Johnson said in a prepared statement.
Orange CEO Schuler added, “We are excited about the potential opportunity in Cerritos and look forward to enhancing the existing network to provide broadband services including high-speed Internet service and digital-cable service.”
Prior to Verizon, the Cerritos system had been a cornerstone of GTE Corp.’s since-abandoned video initiative. The system had hosted interactive-TV service GTE Main Street.
Orange is backed by private-equity groups JP Morgan Partners, M/C Venture Partners, Columbia Capital and Oak Investment Partners.
Knology said it expects the sale to close sometime during the fourth quarter.