Internet service provider Knology has acquired Tampa-based colocation provider E Solutions Corporation for $13.8 million in cash, the companies said today. E Solutions operates two SAS 70 Type II certified data centers in Tampa.
Knology Inc. (KNOL) is headquartered in West Point, Georgia and provides broadband network service to business and residential customers in the Southeast, upper Midwest and Kansas regions. Its offerings include digital cable TV, local and long distance digital telephone service and high-speed Internet access.
E Solutions is a Tampa-based hosting and application development firm that creates and hosts software solutions that enable clients ranging from global Fortune 100 firms to mid-sized and small businesses. E Solutions initially acquired data center space from Fourthstage/Aperian, and in 2006 expanded by acquiring a former Genuity facility.
"The addition of E Solutions will enhance Knology’s already strong commercial product offering and allow us to better serve our business customers," said Todd Holt, President of Knology. "This transaction demonstrates our ongoing disciplined approach toward merger and acquisition opportunities given the economic aspects, as well as the quality of the people and assets involved. Knology will be able to leverage its existing customer base, salesforce and certain real estate to complement a datacenter business that already has a healthy growth profile. We welcome the E Solutions team to Knology and are excited about our future together."
"E Solutions has been delivering superior products to its customers for over a decade and has a proven track record of growing revenue and generating free cash flow," said Rick Nicholas, Jr., Chief Operating Officer of E Solutions.
From a financial perspective, the transaction is immediately accretive to Knology on a levered free cash flow per share basis. Stephens Inc. served as financial advisor to Knology and RBC Capital Markets, LLC acted as financial advisor to E Solutions in this transaction.