Time Warner Cable buys NaviSite as hosting acquisitions pick up

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

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:

Topics: Storage, Data Centers, Hardware

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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