Time Warner Cable Buys Enterprise Hosting And Cloud Services Company NaviSite For $230M

Time Warner Cable has just announced that it has acquired NaviSite, a provider of enterprise-class hosting, managed application, messaging and cloud services, for $5.50 per share in cash, or $230 million. The transaction is expected to close in the second quarter of 2011.

NaviSite provides companies with enterprise hosting capabilities, application management and cloud services. These include email and collaboration hosting for IBM Lotus and Domino; Microsoft Exchange and SharePoint; software QA and testing, server and storage management, data protection and more. The company brought in $126 million in revenue for its fiscal year 2010 and had approximately 1,400 customers using its services.

The company currently operates ten data centers in the United States and the United Kingdom, including two SAS 70 Type II certified data centers, and network operations centers in Gurgaon, India and Andover, Massachusetts.

According to the release, NaviSite’s services will be offered to Time Warner Cable’s commercial services business customers. Time Warner CEO Glenn Britt says 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.”

NaviSite recently sold its Dallas colocation business to Cologix in December.