(Reuters) - Time Warner Cable Inc (TWC.N) has reached an agreement to buy cable systems from NewWave Communications for $260 million in cash, the companies said on Monday.
The U.S. No.2 cable operator will take control of systems serving 70,000 basic video subscribers, 42,000 broadband subscribers and 26,000 phone subscribers in Kentucky and western Tennessee.
Analysts at Nomura said the deal valued the private equity-owned NewWave at $3,700 per acquired video subscriber and expect some operational cost savings because Time Warner Cable has adjacent cable systems.
The transaction is expected to close by the end of the fourth quarter.
New York-based Time Warner Cable has more than 12.5 million video subscribers across the United States. (Reporting by Yinka Adegoke; editing by Andre Grenon)
The U.S. No.2 cable operator will take control of systems serving 70,000 basic video subscribers, 42,000 broadband subscribers and 26,000 phone subscribers in Kentucky and western Tennessee.
Analysts at Nomura said the deal valued the private equity-owned NewWave at $3,700 per acquired video subscriber and expect some operational cost savings because Time Warner Cable has adjacent cable systems.
The transaction is expected to close by the end of the fourth quarter.
New York-based Time Warner Cable has more than 12.5 million video subscribers across the United States. (Reporting by Yinka Adegoke; editing by Andre Grenon)
