Time Warner Cable to acquire cable systems from New Wave

Time Warner Cable Inc., the second- largest U.S. cable-television operator, agreed to buy cable systems in Kentucky and western Tennessee from NewWave Communications for about $260 million in cash.

The deal gives Time Warner Cable 70,000 basic cable subscribers, 42,000 Internet customers and 26,000 phone users, according to a statement from the company today.

Chief Executive Officer Glenn Britt, seeking sales growth beyond the company's strongholds such as the New York area, said this month he was examining cable acquisitions at a price that “gives us a return.” In an April 29 interview, he said a bid for Insight Communications Inc. was “under review.” Other cable assets for sale include Charter Communications Inc.'s Los Angeles properties, people familiar with the matter have said.

“This deal is yet another example of our disciplined approach to capital allocation and M&A,” President and Chief Operating Officer Rob Marcus said in today's statement.

This is the first cable acquisition worth more than $100 million for Time Warner Cable since the New York-based company purchased Adelphia Communications Corp. assets in 2006. At the time, Time Warner cable was part of Time Warner Inc.

Time Warner Cable ended the first quarter with 12.2 million residential video subscribers, about 10 million fewer than Comcast Corp., the largest U.S. cable provider.

NewWave Communications was founded by its management team and private-equity firm Pamlico Capital, based in Charlotte, North Carolina, in 2003. NewWave will continue to distribute cable to more than 80,000 customers in Illinois, Indiana, Missouri and Arkansas after the transaction is closed.

Time Warner Cable fell 9 cents to $73.72 at 4 p.m. in New York Stock Exchange composite trading. The shares have added 12 percent this year.