Time Warner Cable to Buy Data Center Specialist NaviSite for $230 Million

 
 
By Chris Preimesberger  |  Posted 2011-02-02 Email Print this article Print
 
 
 
 
 
 
 

Time Warner Cable will diversify into data center service provisioning that will include various cloud services -- including online storage.

Time Warner Cable said Feb. 1 that it plans to go into the data center operations business by buying NaviSite for $230 million.

The deal is designed to enable Time Warner Cable, the second-largest cable television operator (behind Comcast) in the United States, to diversify into data center service provisioning that will include various cloud services, such as enterprise Web services and online storage.

Time Warner Cable said it will pay $5.50 a share for the Andover, Mass., company-a 33 percent premium to NaviSite's Feb. 1 NASDAQ closing price of $4.13.

In an interesting bit of timing, NaviSite is planning to celebrate the grand opening of its newest data center Feb. 2 in San Jose, Calif.

The transaction comes on the heels of Verizon Communications' announced deal to buy Terremark Worldwide for $1.4 billion on Jan. 28.

The global cloud computing industry, which sold software, hardware and services worth an estimated $68.3 billion in 2010, could skyrocket to as much as $150 billion by 2014, researcher Gartner has projected.

New York-based Time Warner Cable was selling at slightly under $69 in New York Stock Exchange after-hours trading on Feb. 1.

The transaction is expected to close in the second quarter of 2011, Time Warner Cable said.



 
 
 
 
Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on Salesforce.com and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz
 
 
 
 
 
 
 

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