As per the deal, WOW Internet, Cable & Phone, controlled by Avista Capital, will acquire Knology for $19.75 per share, a premium of 9 percent to the stock’s Tuesday close.
Including the assumption of debt, the deal is valued at $1.5 billion.
WOW offers cable and internet services in Michigan, Illinois, Ohio and Indiana.
The combined company will have more than 800,000 customers, the companies said in a statement.
Credit Suisse, Morgan Stanley, RBC Capital Markets, SunTrust Robinson Humphrey and Bank of Tokyo-Mitsubishi UFJ have committed debt financing for the deal.
Knology, which traces its roots to The Interstate and Valley Telephone Co and started providing telephone service in Georgia and Alabama in 1896, went public in 2003.