On Monday, Time Warner Cable Inc. announced that it had reached a definitive agreement with Duke Energy (News - Alert) Corp. to buy fiber optic network firm DukeNet Communications, LLC for $600 million in cash. The payment includes the repayment of debt. It is expected that the new transaction will close in the first quarter of 2014.

DukeNet is a regional fiber optic network company based in Charlotte, N.C. It serves customers in North Carolina and South Carolina, as well as five other states located in the Southeast. Its optic network stretches 8,700 miles and provides data and bandwidth services to the government, data center, enterprise customers and wireless carriers.

"Business Services is a key growth area for Time Warner (News - Alert) Cable and this acquisition will greatly enhance our already growing fiber network to better serve customers, particularly those in key markets in the Carolinas," said Phil Meeks, EVP and COO of Business Services for Time Warner Cable.

Meeks added that he believed the acquisition would aid the firm in expanding its fiber footprint at a price "consistent with its disciplined approach to M&A, accounting for expected synergies and tax benefits."

“Business services is a key growth area for Time Warner Cable and this acquisition will greatly enhance our already growing fiber network to better serve customers, particularly those in key markets in the Carolinas,” Meeks said.

According to Duke Energy the sale completes the company's exit from its non-core telecom asset. 

Time Warner Cable, the No. 2 cable operator, has put big emphasis on its business services, as it faces higher programming costs and the loss of 'cord-cutting' subscribers.

The company reported a stronger second quarter earning amidst higher business service revenue in August. 

Time Warner Cable shares fell 77 cents to $112.02 during Monday mornings trading. Duke came in seven cents lower at $66.36.