Knology will acquire PrairieWave Communications in a deal valued at $255 million in cash, subject to customary closing adjustments.
PrairieWave currently serves approximately 57,000 residential customers and 7,200 business customers in two primary market areas surrounding Sioux Falls and Rapid City, S.D., representing more than 156,000 broadband connections, including some 70,000 voice, 46,000 video and 40,000 Internet connections.
Knology expects the transaction to close sometime during the second quarter.
“PrairieWave is a highly successful, customer-focused business that will expand Knology’s footprint by adding meaningful scale to our existing operations,” Knology CEO Rodger L. Johnson said in a prepared statement. “PrairieWave has achieved excellent bundled penetration and attractive EBITDA [earnings before interest, taxes, debt and amortization] and free-cash-flow margins, and we believe this acquisition will complement our continued focus on organic growth in the existing Knology markets.”