NEW YORK — Time Warner Cable, the nation's second-largest cable TV company, said Monday it has agreed to acquire cable systems serving about 70,000 video subscribers from NewWave Communications for $260 million in cash.
The deal also includes 42,000 high-speed data subscribers and 26,000 phone subscribers in Kentucky and western Tennessee. NewWave is based in Sikeston, Mo., and serves another 80,000 customers in Illinois, Indiana, Missouri and Arkansas.
The purchase is expected to close in the fourth quarter.
Rob Marcus, Time Warner Cable's chief operating officer, said in a statement the acquisition allows the company to expand its footprint at a favorable price.
Nomura analyst Michael McCormack said in a research note that Time Warner Cable has cable systems that are adjacent to the ones it acquired, raising hopes that there will be cost synergies from running the combined systems.