Windstream to Buy Paetec: Deal Worth About $891M

In a deal worth about $891 million, Windstream is to buy Paetec. Windstream Corp., a voice and data service provider based in Little Rock, Ak will be adding Paetec Holdings in hopes of expanding its focus on broadband services for businesses. Paetec, who is based out of Fairport, NY already provides these services to businesses. This new contract will grant Paetec shareholders with 0.460 shares of Windstream’s stock for each Paetec share already owned.

Windstream Purchases Paetec

Both companies boards have approved the deal and Windstream plans on issuing approximately 73 millions shares, totaling nearly $891 million (as reflected by its closing stock price on Friday). Another part of the deal requires Windstream to refinance nearly $1.4 billion in Paetec debt.

Windstream is happy with its purchase of Paetec in the deal worth $891 million in stock. President and chief executive officer of Windstream, Jeff Gardner, stated that the deal will advance the company’s plan to drive top-line revenue growth and will give the company a nationwide network allowing them to offer enhanced capabilities in IP based services, cloud computing, data centers and managed services. In the end Windstream will have a better growth profile and a stronger dividend. When the transaction is complete it is expected that Paetec shareholders will own just about 13 percent of the merged company.


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