Time Warner Cable will acquire Insight Communications for $3 billion in cash. Insight serves more than 750,000 customers in Indiana, Kentucky and Ohio. The operator has approximately 537,000 high-speed data subscribers, 679,000 video subscribers and 297,000 voice subscribers. The company’s DOCSIS 3.0 upgrade is largely complete.
Time Warner Cable expects that, after incurring onetime costs and capital expenditures, it will create annual cost efficiencies of approximately $100 million through programming expense savings and other cost reductions.
Insight is currently owned by The Carlyle Group, Crestview Partners, MidOcean Partners, members of Insight management and others. Carlyle and Insight management took the company private in December 2005, and Crestview and MidOcean purchased a significant stake in the company in April 2010.
“We believe in our business and its long-term prospects and have long thought that Insight’s well-run, technologically advanced systems would fit well with our Midwest operations. With the deal announced today, we are able to acquire those systems at an attractive price that is consistent with both our disciplined approach to M&A and our capital allocation strategy,” said Glenn Britt, Chairman and CEO of Time Warner Cable. “We look forward to serving these customers, welcoming Insight employees to the Time Warner Cable team and building on Insight’s successes.”
http://www.myinsight.com/
