Time Warner Cable Completes NaviSite Deal
The Andover, Mass.-based web hosting provider will now operate as a wholly owned subsidiary of TWC.
April 21, 2011
Time Warner Cable Inc. has completed its acquisition of information technology firm NaviSite Inc. for about $230 million, or $5.50 per share.
The deal, originally announced on Feb. 3, builds on Time Warner's business-to-business offerings, TWC chairman and CEO Glenn Britt said in a prepared statement.
“Business services continue to present significant growth opportunities for the company and the addition of NaviSite strengthens our position in this area,” he added.
NASDAQ-listed NaviSite is a global provider of enterprise-class, cloud-enabled hosting, managed applications and services. It offers application services, enterprise hosting and managed cloud service to businesses that are interested in outsourcing their IT infrastructure. The company runs 10 data centers within the US and the UK. It also operates two data centers, and network operations, located in Gurgaon, India and Andover, Mass. where it is headquartered.
NaviSite is expected to bolster Time Warner’s business class and commercial services segments. R. Brooks Borcherding will continue to helm NaviSite as its president, overseeing its day-to-day operations.
Deutsche Bank Securities and Raymond James advised Time Warner and NaviSite, respectively. Jay Cohen, Ariel Deckelbaum, Stephen Lamb, and Robert Schumer of Paul, Weiss, Rifkind, Wharton & Garrison provided legal counsel. Michael Allen of Richards, Layton & Finger, along with Boston-based BRL Law Group, did the same for NaviSite.
NaviSite trades under the ticker NAVI with a market cap of roughly $210.9 million. Time Warner is listed on the New York Stock Exchange as TWC. Its market cap was about $25.1 billion at the time of the announcement.
Calls to Time Warner and NaviSite were not returned.
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