Time Warner Cable Acquires Insight for $3 Billion

NEW YORK: Time Warner Cable is buying Insight Communications, the ninth-largest cable operator in the U.S., serving more than 750,000 customers, for $3 billion.

Insight Communications serves more than 750,000 customers in Kentucky, Indiana and Ohio. It offers bundled video, high-speed Internet and voice telephone services. Insight is currently owned by The Carlyle Group, Crestview Partners, MidOcean Partners, members of Insight management and others.

“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,” said Glenn Britt, the chairman and CEO of Time Warner Cable. “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. We look forward to serving these customers, welcoming Insight employees to the Time Warner Cable team and building on Insight’s successes.”

“For more than 25 years, Insight has provided our customers with unparalleled service and an unwavering commitment to excellence,” added Michael Willner, co-founder, vice chairman and CEO of Insight Communications. “We are extremely proud of the investment we’ve made to transform our cable systems into one of the leading telecommunications platforms in the nation. Given their industry-leading position and depth of resources, we expect that Time Warner Cable will continue building on the advancements our tremendous employees have made while providing outstanding service to our customers. The communities we serve could not be in better hands than with Time Warner Cable which already operates in this region and is widely regarded as one of the most respected technology companies in the world.”

“Taking into account Insight’s recent performance, $300 million in NOL value, the anticipated net cost synergies and lower capital intensity, this acquisition presents an attractive opportunity to enhance TWC shareholder value,” commented Irene Esteves, the CFO of Time Warner Cable. “With these benefits, the purchase price multiple is favorable to current TWC and peer average trading multiples. We will continue to return excess capital to shareholders consistent with our target leverage ratio of 3.25x, including the impact of this acquisition on our existing and expected leverage.”