Time Warner Cable Inc. (NYSE:TWC) and NewWave Communications have entered a definitive agreement under which Time Warner Cable will acquire cable systems serving approximately 70,000 basic video subscribers, 42,000 HSD subscribers, and 26,000 phone subscribers in Kentucky and western Tennessee for $260 million in cash.
“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,” says Rob Marcus, president and COO, Time Warner Cable.
The transaction is subject to customary conditions, including receipt of FCC, franchise, and antitrust approval. The parties expect closing to occur during the fourth quarter of 2011. Time Warner Cable and NewWave Communications will work together to provide a smooth transition for customers and employees.
RBC Daniels acted as exclusive financial advisor and K&L Gates LLP acted as legal advisor to NewWave on this transaction. Edwards, Angell, Palmer & Dodge LLP served as legal advisor to Time Warner Cable.