Knology Inc. (Booth 213) announced it closed its previously announced acquisition of Graceba Total Communications Inc., a voice, video and high-speed Internet broadband services provider to residential and business customers in Dothan, Ala., in January. The $75 million transaction was funded with the payment of $16 million of cash on hand and the proceeds of a $59 million incremental term loan facility under the company’s existing credit facility.
“The acquisition of Graceba is a very high-quality transaction for our company,” said Rodger L. Johnson, president and CEO of Knology. “The Graceba assets are located in our Southeast footprint and the business has achieved very good connection growth, sub-scriber penetration and EBITDA margins, and most importantly, the business maintains a Knology-like focus on customer service. We welcome a successful and talented team of employees to the Knology family,” continued Johnson. “Closing the transaction early in 2008 allows us to deliver a full year of the accretive EBITDA and free cash flow to our shareholders. In addition, our ability to manage the balance sheet and use a certain amount of cash on hand as well as maintain our solid credit position through the utiliza-tion of the incremental term loan to fund the transaction serves our shareholders well.”
Knology Inc. www.knology.com