Time Warner Cable snaps up NaviSite for $230M as cloud computing consolidates

Time Warner Cable (NYSE: TWC) has announced plans to buy NaviSite (NASDAQ: NAVI) in a $230 million deal through which Time Warner will inherit more than a thousand business customers who use managed services.

Time Warner Cable (NYSE: TWC) has announced plans to buy NaviSite (NASDAQ: NAVI) in a $230 million deal through which Time Warner will inherit more than a thousand business customers who use managed services.

NaviSite offers a variety of hosting, cloud computing, messaging and other services.

The buyout follows on the heels of Verizon’s announced plan to acquire cloud services provider Terremark for $1.4 billion, indicating that a race for delivering more cloud services is heating up.

M&A MANIA: A roundup of 2011 tech mergers and acquisitions

"Our commercial services business is a key growth driver for the company and one in which we continue to see great opportunity," said Glenn Britt, Chairman and CEO of Time Warner Cable, in a statement. "NaviSite provides us with a successful managed services business and a new, innovative managed cloud platform representing significant new growth opportunities. We expect to build upon NaviSite’s successful enterprise-class offerings, and their operational capabilities, infrastructure and expertise to more rapidly create a robust managed services offering for small and medium sized businesses."

Gartner analyst Lydia Leong wrote in a blog post that she was surprised it was Time Warner Cable rather than Time Warner Telecom making the deal given that getting into this business is "virgin territory" for such a company.

NaviSite employs 570 people worldwide and runs 10 data centers in the United States and United Kingdom, as well as network operations centers in Massachusetts and India. NaviSite cloud computing experts are regularly sought after to speak on subjects such as rogue use of cloud services.

It will cost you a lot less than $230M to follow Bob Brown on Twitter, StumbleUpon and Facebook

Read more about data center in Network World's Data Center section.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags cloud computinginternetbusiness issuesData Centerhardware systemsacquisitionsmergerstime warnerservice providersMergers / acquisitionsLAN & WANTime Warner CableNaviSitecloud computing consolidation

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Bob Brown

Network World
Show Comments

Father’s Day Gift Guide

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?