Time Warner to Acquire Cloud Computing Provider NaviSite for $230M
In a move that will strengthen its foothold in cloud-computing, Time Warner Cable (TWC) announced Wednesday that it will acquire managed hosting and cloud services provider NaviSite (NAVI) for $230 million, or $5.50 per share.
Time Warner CEO Glenn Britt says the deal will make the second-largest cable TV operator in the U.S. more attractive to business customers looking for alternative ways to store and manage electronic data. The acquisition is expected to close in the second quarter.
Time Warner's buyout of NaviSite comes after Verizon (VZ) acquired Terremark (TMRK) last week for $1.4 billion. The recent news is prompting many to wonder whether the $70 billion web-based storage and services industry may be the next front for major M&A action. Research firm Gartner estimates the market will reach $148.8 billion by 2014.
