Knology snags Graceba for $75 million
Dothan, Ala.-based Graceba is a triple-play provider that has about 25,000 connections. Knology said it expects to fund the $75 million purchase with $16 million of cash on hand, and with $59 million of debt issued under the company’s existing credit facility as an incremental first lien term loan. Subject to all of the usual approvals, Knology expects the deal to close in the first quarter of next year.
“Graceba is an acquisition similar to the PrairieWave transaction, although somewhat smaller, located within our existing Southeast footprint,” said Knology President and CEO Rodger L. Johnson. “The Graceba market has strong demographics, and the business is delivering healthy operating and financial results.
Similar to PrairieWave, Graceba is a very well-run organization with a Knology-like focus on customer service with a consistent business philosophy.”
West Point, Ga.-based Knology is the 17th largest cable operator in the U.S., with 221,800 current subscribers.