Time Warner Cable Inc. announced that it has entered into an agreement with Duke Energy Corporation and investment funds managed by Alinda Capital Partners to buy DukeNet Communications, LLC for $600 million in cash, including the repayment of debt.
DukeNet Communications is headquartered in Charlotte, North Carolina and they are a leading regional telecommunications service provider who offers fiber network solutions for data centers, wireless carriers, government, healthcare manufacturing, finance, education, and many other industries. DukeNet has a fiber optic network of over 8,700 miles.
"Business Services is a key growth area for Time Warner Cable and this acquisition will greatly enhance our already growing fiber network to better serve customers, particularly those in key markets in the Carolinas," said Phil Meeks, Executive Vice President and COO of Business Services for Time Warner Cable. "This acquisition will help us expand our fiber footprint at a price that is consistent with our disciplined approach to M&A, accounting for expected synergies and tax benefits.
This transaction is expected to close in the first quarter of 2014, but must meet regulatory approvals beforehand. Time Warner Cable Inc. is among the largest providers of video, high-speed data and voice services in the United States, connecting more than 15 million customers to entertainment, information and each other. Time Warner Cable Business Class offers data, video and voice services to businesses of all sizes, cell tower backhaul services to wireless carriers and enterprise-class, cloud-enabled hosting, managed applications and services.