Shares of NaviSite Inc. (NAVI) are trading up 30% at $5.40 per share during the Wednesday mid-morning trading session. The stock broke out to the upside earlier, rallying as high as 33%. Spike attributed to Time Warner Cable Inc. (TWC) which late Tuesday announced that it would acquire the provider of enterprise-class hosting for a total equity value of $230 million, or $5.50 a share, representing a 33% premium over NaviSite’s Tuesday closing price of $4.13 p/sh.
In a statement, Time Warner chairman and CEO called the media company’s commercial services business “a key growth driver for the company and one in which we continue to see great opportunity.”
The stock of NaviSite opened the market with a $1.33 jump. Volume has exploded with more than 10.8 million NAVI shares already trading hands compared to a daily average volume of just 87,000 shares. The day’s trading range for the ticker has been between $5.42 and $5.44 per share.
At last check, NAVI was up $1.32, or 31.72%, to $5.44. Time Warner Inc. gained 6.75% to $34.49.