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Time Warner Cable To Buy Fiber Optic Network Firm DukeNet For $600 Mln In Cash

Time Warner Cable Inc. (TWC) Monday announced a definitive agreement with Duke Energy Corp. and investment funds managed by Alinda Capital Partners to buy fiber optic network firm DukeNet Communications, LLC for $600 million in cash, including the repayment of debt. The transaction is expected to close in the first quarter of 2014.

DukeNet, based in Charlotte, North Carolina, is a regional fiber optic network company serving customers in North Carolina and South Carolina, as well as five other states in the Southeast.

DukeNet has a fiber optic network of over 8,700 miles and provides data and high-capacity bandwidth services to wireless carrier, data center, government, and enterprise customers. Duke Energy owns 50 percent of DukeNet and the Alinda investment funds own the remaining 50 percent.

Phil Meeks, EVP and COO of Business Services for Time Warner Cable, said, "Business Services is a key growth area for Time Warner Cable and this acquisition will greatly enhance our already growing fiber network to better serve customers, particularly those in key markets in the Carolinas."

Meeks added that the acquisition would help the firm expand its fiber footprint at a price consistent with its disciplined approach to M&A, accounting for expected synergies and tax benefits.

According to Duke Energy, the sale completes its transition out of DukeNet, which is a non-core business to it.

RBC Capital Markets, LLC advised Duke Energy and Alinda on the sale of DukeNet, and Moore & Van Allen PLLC provided legal counsel.

Edwards Wildman Palmer LLP provided legal counsel to Time Warner Cable.

TWC closed at $112.79 on Friday.

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