Time Warner Cable Buying NaviSite (TWC, NAVI)

Time Warner Cable

announced it's paying $5.50 per share for NaviSite, Inc.

. The transaction values NaviSite at approximately $230 million. “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. “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. This transaction is consistent with our capital allocation strategy – selectively investing in our business to accelerate growth while continuing to return capital to shareholders.” Shares of NaviSite are halted in the after-hours trading.