Category Archives: Windstream

Windstream Acquisition of Hosted Solutions Completed

Windstream Corp. (Nasdaq: WIN) has completed its acquisition of Hosted Solutions Acquisition, LLC (Hosted Solutions) from ABRY Partners in an all-cash transaction valued at $310 million. Windstream financed the transaction through cash and revolving credit borrowings.

Hosted Solutions, based in Raleigh, N.C., is a leading regional data center and managed hosting provider focused on enterprise-class Infrastructure as a Service (IaaS) solutions (managed hosting, managed services, colocation, cloud computing and bandwidth) for small and medium-sized business customers as well as large enterprises.

Hosted Solutions operates five state-of-the-art SAS 70 Type II certified data centers in Raleigh, N.C.; Charlotte, N.C., and Boston and serves more than 600 customers. Windstream now operates a total of 12 data centers in eight states.

Windstream will be able to fully amortize the purchase price goodwill over 15 years, resulting in expected tax benefits with an estimated net present value of $52 million.

Windstream estimates the transaction will be accretive to free cash flow in the first year after expected annual synergies of approximately $1.5 million in operating expense savings and excluding integration charges.

Additional Information

The Bank Street Group LLC and Stephens Inc. acted as financial advisers and Kutak Rock LLP acted as legal adviser to Windstream on the transaction. Kirkland & Ellis LLP acted as legal adviser to ABRY Partners and Hosted Solutions.

Cautionary Statement Regarding Forward-Looking Statements

Windstream claims the protection of the safe-harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including statements regarding the expected benefits of the acquisition, are subject to uncertainties that could cause actual future events and results to differ materially from those expressed in the forward-looking statements. These forward-looking statements are based on estimates, projections, beliefs and assumptions that Windstream believes are reasonable but are not guarantees of future events and results. Actual future events and results of Windstream may differ materially from those expressed in these forward-looking statements as a result of a number of important factors. Factors that could cause actual results to differ materially from those contemplated above include, among others: the possibility that the anticipated benefits from the acquisition cannot be fully realized or may take longer to realize than expected; the possibility that costs or difficulties related to the integration of Hosted Solutions operations into Windstream will be greater than expected; the ability of the combined company to retain and hire key personnel; and those additional factors under the caption

Windstream expands revolving credit agreement

Windstream Corp. (Nasdaq: WIN) announced that it had increased the capacity under its senior secured revolving credit facility from $500 million to $750 million. Approximately $18 million of the revolver commitments will terminate on July 17, 2011, with the remainder terminating on July 17, 2013.

J.P. Morgan Chase Bank, N.A., is the administrative agent.

This press release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any securities of Windstream.

Windstream launches new business blog

Windstream (Nasdaq: WIN) announces the launch of its new business blog, designed to provide businesses with helpful articles and updates on the hottest topics including cloud computing, data centers, voice and data services, MPLS networking, reducing communication expenses and selecting a new communication system.

Blog posts, found at www.windstreambusiness.com/blog, are written by a panel of communication experts with decades of experience in the industry and provide useful information on how businesses can utilize advanced communication solutions to operate more effectively and productively.

The Windstream Business Blog establishes another forum for two-way communication between customers and Windstream and can facilitate the exchange of ideas between customers.

“Windstream prides itself on serving as a technology partner with our customers, and the Windstream Business Blog is one way we can have a conversation with our customers about trends in next-generation communication solutions,

Hosted Solutions to be aquired by Windstream

Windstream Corp. (Nasdaq: WIN) announced today that it has entered into a definitive agreement with ABRY Partners to acquire Hosted Solutions Acquisition, LLC (Hosted Solutions) in an all-cash transaction valued at $310 million.

Hosted Solutions, based in Raleigh, N.C., is a leading regional data center and managed hosting provider focused on enterprise-class Infrastructure as a Service (IaaS) solutions (managed hosting, managed services, colocation, cloud computing and bandwidth) for small and medium-sized business customers as well as large enterprises. The company serves more than 600 customers and has approximately 125 employees.

The acquisition of Hosted Solutions will transform Windstream