The Deal: Time Warner Cable Buys DukeNet in Play for Broadband Customers
New York (TheStreet) -- Time Warner Cable
Owned by Duke Energy
The Daily Deal reported in May that Duke and Alinda were shopping the company. At the time, sources expected the company to fetch $450 million to $500 million. PE-backed fiber operator Zayo Group LLC was thought to be as suitor.
As growth has slowed in the residential market, cable operators have targeted the business market. Time Warner Cable purchased hosting and cloud services provider NaviSite Inc. for $230 million in 2011.
"The returns are very visible to us," Minson said of commercial services, "and it's a place that we are excited to be investing money."
Fellow pay-TV company Cox Communications Inc. said it would buy Oklahoma fiber networker EasyTel Communications Inc. in September. Bright House Networks LLC, which is a portfolio company of Time Warner Cable and Condé Nast publisher Advance Publications Inc., acquired Florida-based cloud services company Televations Inc.
Peter Barrett, Jeffry Hardin, Kate Price, Karl Fryzel and Katie Day of Edwards Wildman Palmer LLP advised Time Warner Cable.
The parties expect to close the deal in the first quarter of 2014.
--By Chris Nolter in New York