Time Warner Cable to acquire DukeNet Communications for $600 mn

Time Warner Cable Inc, the second-largest cable company in the US, yesterday agreed to buy fiber-optic network provider DukeNet Communications for $600 million in cash, including repayment of debt, from Duke Energy Corp and investment funds managed by Alinda Capital Partners.

The deal comes two years after Time Warner Cable added more customers by acquiring NaviSite Inc for $230 million.

Based in Charlotte, North Carolina, DukeNet owns 8,700 miles of fibre-optic network that provides data and bandwidth services to customers in North Carolina, South Carolina and five other states in the Southeast.

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.

"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, business services, 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."

Duke Energy is the largest electric power holding company in the US with more than $110 billion in total assets and approximately 7.2 million electric customers located in six states in the Southeast and Midwest.

"This is a positive transaction for Duke Energy," said Marc Manly, president of Duke Energy's Commercial Business group. "The sale completes Duke Energy's transition out of DukeNet, which although a growing operation, is a non-core business to our company."

The deal is expected to close in the first quarter of 2014, subject to US regulatory scrutiny.