Communications company Knology announced it will acquire Dothan based Graceba Total Communications.
A small telephone company that started out as Ashford Telephone Company back in 1912 with 29 accounts and a manual switch operator, over the course of 95 years has grown into Graceba Total Communications, serving a large portion of Houston County for telephone, cable television and Internet.
Now, Graceba will become part of Knology Inc. as it continues to expand in the southeast.
Chris Dupree, president and CEP of Graceba said, "The similarities are truly amazing and we do a lot of the same things in a similar way. But it all comes back that we're both committed to the customer from the top in every decision we make."
Georgia based Knology has over a half million total connections in the southeast with a strong representation in Alabama and Georgia.
So, what changes are in store for the thousands of Graceba customers in our region?
President of Knology Rodger L. Johnson said, "I wouldn’t expect a whole lot of changes early on in the process. As a matter of fact, they've done a great job here. They have a great reputation in the community and we'll continue."
Seventy-five million dollars in cash is the number according to the Knology website that will go into the purchase of Graceba.
Knology hopes to add 25,000 customers to its base through this purchase.
Dupree said, "Economies of scale, the price points to be able to continue to provide at an affordable price to the customer; it became evident that our business was in somewhat of a transition."
Exactly what is going to happen to Graceba customers as far as payment options and viewing packages remains to be seen, but soon their checks will no longer stop in the Wiregrass
Knology expects to finance the purchase with $16 million cash on hand and the proceeds from a $59 million dollar incremental term loan.