Windstream completes Iowa Telecom acquisition
US telecoms operator Windstream has announced the completion of its US$1.2bn cash-and-share acquisition of local provider Iowa Telecom.
As part of the deal, Iowa Telecom shareholders received 0.804 shares of Windstream stock and US$7.90 in cash per each…
US telecoms operator Windstream has announced the completion of its US$1.2bn cash-and-share acquisition of local provider Iowa Telecom.
As part of the deal, Iowa Telecom shareholders received 0.804 shares of Windstream stock and US$7.90 in cash per each Iowa Telecom share. Windstream, for its part, issued some 26.7 million shares worth US$284m, based on the company’s closing stock price on May 28, while also paying some US$260m in cash and repaying Iowa Telecom’s US$613m in outstanding debt.
Iowa Telecom shareholders will receive a final interim dividend of $0.1389890 per share as soon as possible.
As of March 31, Iowa Telecom provided service to approximately 249,000 access lines, 96,000 high-speed Internet customers and 27,500 digital TV customers in the states of Iowa and Minnesota. Following the transaction, Windstream will boast increased scale and annual synergies of circa US$35m in operating expenses and capital expenditure savings, in addition to tax assets with an estimated net present value of US$130m.
Upon signing of the deal, Iowa Telecom Chairman and CEO Alan Wells joined the Windstream board of directors.
Based in the state of Arkansas, Windstream is a listed company providing phone, high-speed internet and high-definition digital TV services operations in 23 states, drawing in about US$4bn in annual revenues.
In the last year, it has also acquired D&E Communications, Lexcom and NuVox.
