Time Warner Telecom Buys Xspedius

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Time Warner Telecom said Friday that it agreed to buy commercial telecommunications provider Xspedius Communications for $531.5 million in cash and stock.

Xspedius sells high-speed-Internet, local and long-distance phone service in 43 markets across 18 states.

Time Warner Telecom, which is backed by Time Warner Inc., said it expects Xspedius' stand-alone operations to generate about $230 million-$250 million of revenue and $20 million-$25 million in cash flow in 2006.