Published: November 17, 2009
Knology Announces Acquisition of the Assets of Private Cable Co., LLC for $7.5 Million Cash
WEST POINT, Ga. - (BUSINESS WIRE) - Knology, Inc. (Nasdaq: KNOL) today announced that it has closed on the
acquisition of the assets of Private Cable Co., LLC ("PCL Cable" ) for
$7.5 million in cash. PCL Cable, a provider of video, voice and data
services to residential and business customers in Athens and Decatur,
Alabama, generates approximately $5 million in annualized revenue and
$1.5 million in annualized EBITDA, before considering potential
synergies. M. Todd Holt, Knology's President and Chief Financial
Officer, said, "We are very excited to welcome the employees of PCL to
the Knology family. This transaction is a nice fit with Knology both
from an operational and financial perspective. The PCL Cable business
will operate as an extension of our existing Knology operation in
Huntsville, Alabama. The transaction will be immediately accretive,
before synergies, to EBITDA per share, levered free cash flow per share
and overall enterprise value. Although a smaller transaction relative to
our past acquisitions, we continue to take a disciplined approach to M&A
activity in an effort to drive increased shareholder value."
About Knology
Knology Inc., headquartered in West Point, Georgia, is a leading
provider of interactive communications and entertainment services in the
Southeast and in the South Dakota region. Knology serves both
residential and business customers with one of the most technologically
advanced broadband networks in the country. Innovative offerings include
over 200 channels of digital cable TV, local and long distance digital
telephone service with the latest enhanced voice messaging features, and
high-speed Internet access, which enables consumers to quickly download
video, audio and graphic files using a cable modem. Knology's
fiber-based business products include iPlex, which delivers Ethernet
connections to an IP-PBX using Session Initiated Protocol (SIP)
technology, Passive Optical Network (PON), which supplies IP
architecture with segmented voice and data bandwidth, and Managed
Integrated Network Solutions (MATRIX), an integrated IP-based technology
which converges data and voice. For more information, please visit www.knology.com.
Information about Forward-Looking Statements
This press release includes "forward-looking" statements within the
meaning of the federal securities laws, including the Private Securities
Litigation Reform Act of 1995, that are subject to future events, risks
and uncertainties that could cause our actual results to differ
materially from those expressed or implied. In addition, our revenues
and earnings and our ability to achieve our planned business objectives
are subject to a number of factors that make estimates of future
operating results uncertain, including, without limitation, (1) that we
will not retain or grow our customer base, (2) that we will fail to be
competitive with existing and new competitors, (3) that we will not
adequately respond to technological developments that impact our
industry and markets, (4) that needed financing will not be available to
us if and as needed, (5) that a significant change in the growth rate of
the overall U.S. economy will occur such that there is a material impact
on consumer and corporate spending, (6) that we will not be able to
complete future acquisitions, that we may have difficulties integrating
acquired businesses, or that the cost of such integration will be
greater than we expect, and (7) that some other unforeseen difficulties
occur, as well as those risks set forth in our Annual Report on Form
10-K for the year ended December 31, 2008, and our other filings with
the SEC. This list is intended to identify only certain of the principal
factors that could cause actual results to differ materially from those
described in the forward-looking statements included herein. Investors
are cautioned not to place undue reliance on these forward-looking
statements. Forward-looking statements relating to expectations about
future results or events are based upon information available to us as
of today's date, and we do not assume any obligation to update any of
these statements, except as required by law.
Knology, Inc.
M. Todd Holt, President and Chief Financial Officer
706-645-8752
todd.holt@knology.com
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