Time Warner Cable makes $600 million technology acquisition
Time Warner Cable announced this week that it made a technology acquisition for $600 million, which should strengthen its place as the second-largest cable company in the United States. Time Warner bought DukeNet Communications, which is a regional fiber optic network company serving customers in North Carolina and South Carolina and five other states in the Southeast.
Bloomberg reported that DukeNet operates in an 8,700-mile fiber-optic network for wireless carriers, data centers, government customers and corporate clients.
Time Warner Executive VP and COO of Business Services Phil Meeks said in a company statement that the acquisition will enhance his company's already-growing fiber network to better serve customers, especially those who live in the Carolinas.
"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," Meeks said.
Marc Manly, president of Duke Energy's Commercial Business group, agreed, adding that the move is a positive transaction for his company.
Alinda Capital Partners manages investment funds at Duke, and is also satisfied with the opportunity being created. According to managing partner Chris Beale, the acquisition is happening during a very exciting time in the development of telecommunications infrastructure.
"We believe DukeNet is well-positioned to continue its record of strong growth," Beale said.
Technology mergers and acquisitions can be designed so all companies involved are able to benefit, as is the case with Time Warner and DukeNet. Each organization is expanding its customer base while also improving the products and services it can offer those clients.