Windstream continues to expand its presence, particularly when it comes to business/enterprise data infrastructure and services. The telecompetitor announced the completion of its acquisition of Q-Comm Corp., a privately held regional fiber transport and competitive local exchange carrier (CLEC).
The acquisition includes Q-Comm’s wholly-owned Kentucky Data Link Inc. and Norlight, Inc. The former is a fiber services provider with a fiber network that covers some 30,000 fiber route miles in 23 states and the District of Columbia that provides long-haul and metro fiber services to large enterprise, government, education and medical market participants. The latter is a CLEC serving some 5,500 small and medium-sized businesses in Indiana, Kentucky, Tennessee and Wisconsin.
Valued at some $818 million, Windstream ponied up approximately $279 million in cash to acquire Q-Comm, as well as issuing 20.6 million shares of common stock worth approximately $273 million and repaying approximately $266 million of Q-Comm’s net debt. Management said they expect to “achieve annual operating expense and capital expenditure synergies of approximately $25 million,” as a result of the acquisition.
Earlier this week, Windstream announced the completion of its $310 million acquisition of Hosted Solutions, a regional data center provider with operations in North Carolina and Massachusetts.