Time Warner Cable Inc., the second-largest cable TV operator, on Monday announced plans to acquire Insight Communications Company for $3 billion in cash, representing its latest deal this summer to grow the business through mergers.
Privately held Insight serves roughly 537,000 high-speed data subscribers, 679,000 video customers and 297,000 voice subscribers in Indiana, Kentucky and Ohio.
The agreement is subject to customary closing conditions, including Federal Communications Commission and franchise approvals.
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,” Time Warner Cable Chairman and CEO Glenn Britt said in a statement.
New York-based Time Warner Cable expects the merger to yield cost efficiencies” of roughly $100 million through programming expense savings and other cost reductions after the company incurs onetime costs and capital expenditures.
The deal represents another acquisition this summer for Time Warner Cable, which served about 14.45 million voice, Internet and video customers at the end of the second quarter. In June, Time Warner Cable announced an agreement to acquire cable systems from NewWave Communications for $260 million. Time Warner Cable will pick up about 70,000 basic video subscribers, 42,000 high-speed data customers and 26,000 phone subscribers in Kentucky and western Tennessee.