WOW Completes Knology Acquisition7/17/2012 9:25 AM Eastern
About three months after first announcing the deal, WideOpenWest said Tuesday that it has completed its acquisition of Knology Inc.
The deal was first announced in April, with WOW agreeing to pay $1.5 billion in cash for the West Point, Ga.-based overbuilder. The combined entity will have about 800,000 customers in a territory that passes 2.8 million homes across 13 states. With the deal, WOW moves up one spot among top cable operators, becoming the ninth largest MSO in the country (or 13th largest multichannel video programming distributor), ahead of CableOne which has 622,000 customers.
"We're pleased to have completed this transaction so expeditiously and are excited to operate together as a combined entity," said WOW chairwoman and CEO Colleen Abdoulah in a statement. "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."
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," Cochran said in a statement. "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."
WOW operates in Michigan, Illinois, Ohio and Indiana, while Knology serves the southeastern and Midwestern United States.
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.