NaviSite Bought by Time Warner for $230M

2/2/11Follow @xconomy

Andover, MA-based NaviSite (NASDAQ: NAVI) , an provider of IT services such as data hosting and managing for large organizations, will be acquired by Time Warner Cable for $5.50 per share in cash, for a total equity value of $230 million, the companies announced last night. Time Warner (NYSE: TWC) said that NaviSite’s cloud platform will enable it to build a managed services product for small-  and medium-sized businesses, and that the deal brings it NaviSite’s 1,200-plus customers. The Time Warner purchase represents a 33 percent premium on NaviSite’s closing stock price on Tuesday, a big jump from a buyout offer NaviSite received in December from one of its major shareholders, Atlantic Investors, who wanted to buy the rest of the company’s common stock for $3.05 per share.

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