Time Warner Cable buys NaviSite as hosting acquisitions pick up

Time Warner Cable on Tuesday said it will acquire NaviSite for $230 million, or roughly $5.50 a share.

The Time Warner Cable-NaviSite deal is the second in a week involving a major telecom incumbent and a datacenter hosting and cloud company. Last week, Verizon bought Terremark in a deal valued at $1.2 billion. Time Warner Cable is paying a 33 percent premium to NaviSite's closing price of $4.13.

In a statement, Time Warner Cable said NaviSite will give the company a managed services business and cloud platform to better target businesses. NaviSite will be folded into Time Warner's commercial services business. NaviSite has 10 data centers, 570 employees and 1,200 customers.

Time Warner cable added that NaviSite's infrastructure will enable it to meet demand from business customers. The deal is expected to close in the second quarter.

Related:

• Verizon's Terremark purchase puts Rackspace, Savvis on shopping list
• Verizon steps up its cloud game, buys Terremark for $1.4 billion
• Verizon steps into IaaS cloud leadership ranks