TIME Warner Cable (TWC) has reached a deal to buy The Carlyle Group’s cable operator Insight Communications for $3bn (£1.8bn), according to sources close to the deal.
Insight, the 10th-largest cable operator in the US, sells cable television, high-speed internet and telephone services, serving approximately 750,000 customers.
Its representatives approached TWC in recent weeks to discuss a deal after failing to reach agreement with other strategic and private equity bidders, the source said.
The deal could enable TWC to reap cost savings, tax benefits and other operating synergies.
TWC had dropped out of an auction for Insight earlier this year, because the company believed Carlyle was asking for too much. Carlyle had originally been looking for around $4bn.
Executives at TWC have regularly said that any acquisition targets would not be valued at a higher multiple than its own stock. The deal is TWC’s largest acquisition since it was spun off from former parent Time Warner in 2009. Earlier this year it paid $260m for small cable operator NewWave Communications.