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OVERBUILDER KNOLOGY CONFIRMED LAST week (Aug. 4) it has a definitive agreement to buy Sunflower Broadband for $165 million in cash, continuing an aggressive expansion effort.
The price values Sunflower at about 7.5 times 2010 estimated cash flow, in line with recent private cable sales, such as Cablevision Systems' pending acquisition of Bresnan Communications. Sunflower will contribute about $51 million in revenue and $22 million in cash flow to Knology after the deal closes in the fourth quarter.
Multichannel News reported July 27 the two companies were close to a deal.