Rediff.com« Back to articlePrint this article

Windstream to buy Q-Comm Corp for $782 mn

August 18, 2010 12:17 IST

Telecom firm Windstream Corp has said it will acquire Q-Comm Corp, a privately held fiber-optic network operator for $782 million.

Windstream will issue about 20.6 million shares valued at $237 million based on Tuesday's closing of $11.49 a piece on the New York Stock Exchange.

The company would pay about $278 million in cash and repay Q-Comm's debt of $267 million, it said in a statement.

The deal includes Q-Comm's subsidiaries Kentucky Data Link, a fiber services provider in 22 states, and Norlight, a phone and internet company that provides services to about 5,500 small and medium businesses in the Midwest.

The two subsidiaries which together employs 600 people, have about $231 million in revenue in the 12 months ended June 30.

The deal, subject to regulatory approvals, is expected to close in the fourth quarter of 2010.

"This transaction builds on Windstream's strategy to become a next-generation telecom provider focused on broadband and enterprise customers.

KDL's extensive fiber network creates savings for us as well as opportunities to grow business revenues, particularly transport services for wireless carriers," said Windstream President and CEO Jeff Gardner.

Stephens Inc and BofA Merrill Lynch are acting as adviser to Windstream on the transaction, while RBC Daniels are advising Q-Comm.

© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.