New York-Insight Communications Co. Inc. has purchased the remaining 25 percent interest in its Columbus, Ohio, system from Coaxial Communications in a deal valued at about $13 million.
Insight already owned 75 percent of the Columbus system as part of a partnership agreement reached with Coaxial in 1998. As a result of this latest deal, Insight will control 100 percent of the Ohio system.
The purchase price was 1 million shares of Insight common stock, 80 percent of which has been issued to an Insight-controlled entity and 20 percent of which is payable to Coaxial principals by Sept. 1. Insight can also choose to pay the 20 percent in cash.
Insight's closing price of $13 per share Aug. 8 made the deal worth $13 million.
"This greatly simplifies the equity structure of our Columbus system and enables us to consolidate the financial performance of this system with our other operations for financial-reporting purposes," Insight executive vice president and chief operating officer Kim Kelly said in a prepared statement. "It also provides us with financing and other flexibility that we did not previously have for the Columbus system."
In the second quarter, Insight more than doubled its revenue to $106.9 million, and its cash flow nearly tripled to $59.3 million.
The gains were due mainly to buying 50 percent of InterMedia Partners' Kentucky operation last year. AT & T Corp. owns the other 50 percent. Insight manages the system, with about 430,000 subscribers.
Without the Kentucky addition, revenue and cash flow declined 3 percent and 12 percent, respectively, over the first six months of 2000.