Knology buys small, nearby operator
As it reported a third-quarter loss, Knology announced the acquisition of Private Cable Co. for $7.5 million cash.
Private Cable has systems in Athens and Decatur, Ala., which are contiguous with Knology’s network in Huntsville.
Knology said Private Cable generates approximately $5 million in annualized revenue and $1.5 million in annualized EBITDA, before synergies. The transaction is expected to close during the fourth quarter of 2009.
Knology reported third-quarter revenue of $105.8 million, a 2.5 percent increase compared with its third quarter a year ago.
The company’s loss widened, however, by half a million dollars, from $2.8 million a year ago to $3.3 million in the quarter just completed. The shortfall was attributed to several large, one-time charges.
On the operations side, Knology reported total connections increased by 2,575 during the third quarter, for a total of 681,920, or a 2 percent increase compared with a year ago. Video and data connections increased by 136 and 2,693, respectively, while voice connections decreased by 254. Business connections increased by 871 during the period to 105,243 connections, compared with 100,209 business connections one year ago.