Wow to purchase Knology for $750.5 million

ENGLEWOOD, Colo. (AP) -- Wow Internet, Cable & Phone is buying cable TV and Internet provider Knology Inc. for $750.5 million partly to broaden its geographic reach.

Wow operates in Michigan, Illinois and Indiana, while Knology serves the Southeastern and Midwestern U.S. In February Knology shares spiked after a report said the company was shopping itself to potential buyers.

Wow is paying $19.75 per share, a 9 percent premium to Knology's Tuesday closing price of $18.05. The companies value the total deal at approximately $1.5 billion. West Point, Ga.-based Knology has about 38 million outstanding shares, according to FactSet.

Knology's board unanimously approved the buyout, which is expected to close following regulatory and shareholder approval.

The combined company's products and services will be available to more than 2.8 million homes in 13 states.