WaveDivision Holdings LLC’s deal to buy Knology Inc.’s 8,000-subscriber system in Cerritos, Calif., for $10 million in cash was completed Monday.
Knology said net proceeds from the sale would be used for general corporate purposes, including the funding of success-based capital expenditures and operating expenses.
Investment-banking firm DH Capital LLC acted as the exclusive financial advisor to Knology with respect to the transaction.
Orange Broadband Inc. terminated its agreement to purchase the system from Knology in January.
Knology purchased the Cerritos system in December 2003 from Verizon Media Ventures Inc. as part of a larger $17 million deal in which it also acquired systems in Pinellas County, Fla., with about 53,000 subscribers.
WaveDivision currently serves some 80,000 cable-TV and high-speed-data subscribers in western Washington and Southern California.
“We are pleased to have completed the sale of the Cerritos assets,” Knology CEO Rodger L. Johnson said in a prepared statement. “The proceeds received from this transaction further enhance our liquidity position and allow us to fully focus on operating our core broadband businesses in the Southeast.”
WaveDivision CEO Steve Weed added, “We want to own and operate cable systems that offer the latest technologies, such as digital cable, HDTV and high-speed Internet. We are very excited about the opportunity to upgrade the Cerritos network and provide these enhanced services to the community.”