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Tuesday, November 03, 2009

Windstream To Buy NuVox In $643 Million Deal

By Jeffry Bartash

MarketWatch Pulse

WASHINGTON - Windstream Corp. on Tuesday said it will acquire privately held NuVox for $643 million in a deal to boost its presence in the business market. NuVox, based in Greenville, S.C., provides phone and broadband service to business customers in 16 states scattered throughout the Southeast and Midwest. Little Rock, Ark.-based Windstream plans to issue 18.7 million common shares, pay $280 million in cash and assume about $180 million in NuVox debt. "This transaction significantly advances our strategy to grow broadband and business revenues, which is important given the growth prospects in these areas," Windstream CEO Jeff Gardner said in a statement. In the 12 months ended in June, NuVox generated $561 million in revenue and $115 million in adjusted operating income. The deal is expected to close in the first half of 2010 and add to free cash flow in the first year. Windstream also expects to generate up to $30 million in annual "synergies."

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