Time Warner Cable To Buy NaviSite For $230M2/01/2011 5:29 PM Eastern
Time Warner Cable said late Tuesday it has agreed to acquire computer services firm NaviSite for $5.50 per share in cash, a deal valued at about $230 million.
NaviSite, based in Andover, Mass., provides enterprise-class hosting, managed application, messaging and cloud services to the commercial services industry.
"Our commercial services business is a key growth driver for the company and one in which we continue to see great opportunity," Time Warner Cable chairman and CEO Glenn Britt said in a statement. "NaviSite provides us with a successful managed services business and a new, innovative managed cloud platform representing significant new growth opportunities."
The deal gives Time Warner Cable Business Class, the commercial services arm of the cable giant, an immediate presence in the managed services market with NaviSite's more than 1,200 enterprise customers.
The purchase price represents a 33% premium to NaviSite's closing price of $4.13 per share on Feb. 1. The deal is expected to close in the second quarter, and is subject to shareholder approval and other customary closing conditions.
Based in Andover, NaviSite has about 570 employees worldwide, operates 10 data centers in the United States and the United Kingdom and has operations centers in Gurgaon, India and Andover.
Time Warner Cable is the second largest MSO in the country with about 12.3 million customers. Its commercial services revenue was about $1.1 billion in 2010, up 21% from the prior year.