The cable systems serve about 70,000 basic video subscribers, 42,000 high speed data or HSD subscribers, and 26,000 phone subscribers in Kentucky and western Tennessee.
TWC Buying NewWave Systems For $260M
(RTTNews) — Time Warner Cable Inc. said Monday that it will acquire certain cable systems from NewWave Communications for $260 million in cash. The cable systems serve about 70,000 basic video subscribers, 42,000 high speed data or HSD subscribers, and 26,000 phone subscribers in Kentucky and western Tennessee.
The transaction is subject to customary conditions that include receipt of FCC, franchise and antitrust approval. The companies expect the transaction to close during the fourth quarter of 2011. New York-based Time Warner Cable is the second-largest cable-TV provider in the U.S.
Sikeston, Missouri-based NewWave Communications was founded by its management team and Charlotte, North Carolina-based private equity firm Pamlico Capital in 2003. The company provides communications services including high-speed data, cable television and telephone to smaller, non-urban communities in the Midwest.
NewWave Communications noted that following closing of the transaction, it will continue to serve more than 80,000 customers in Illinois, Indiana, Missouri and Arkansas.
Rob Marcus, President and COO of Time Warner Cable said, “This deal is yet another example of our disciplined approach to capital allocation and M&A. Taking into account a full tax step-up and significant operational synergies, the deal enables us to expand our cable footprint at a purchase price that compares favorably with Time Warner Cable’s current trading multiples.”
Jim Gleason, CEO of NewWave Communications said, “NewWave acquired many of these properties as long ago as 2003 and this transaction allows NewWave to realize a return for our investors while allowing our team to concentrate on our ongoing operations in our other service areas.”
BRAND CONNECTIONS
RBC Daniels acted as exclusive financial advisor to NewWave on the transaction, while K&L Gates LLP acted as its legal advisor. For Time Warner Cable, Edwards, Angell, Palmer & Dodge LLP served as legal advisor.
In Monday’s regular trading session, TWC is trading at $73.98, up $0.17 or 0.23 percent on a volume of 64,292 shares.
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