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Windstream Corp. announced today that it finalized its acquisition of Greenville-based NuVox Inc. The Arkansas-based company announced its intent to buy NuVox in November.
GSA Daily Staff Report
Published Feb. 8, 2010
Windstream Corp. announced today that it finalized its acquisition of Greenville-based NuVox Inc., in an agreement valued at $647 million.
The Arkansas-based company announced its intent to buy NuVox in November.
Windstream issued approximately $187 million in common stock and paid approximately $280 million in cash as part of the transaction. Windstream also repaid approximately $180 million of NuVox's total outstanding net debt. The company financed the acquisition through proceeds from a debt offering in December.
NuVox employs about 700 people in the Upstate and has a visible headquarters building on Main Street in downtown Greenville. Windstream has said substantial changes in Greenville operations are not expected.
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With the NuVox acquisition, Windstream acquired approximately 90,000 business customers in complementary markets in 16 states across the Southeast and Midwest.
"NuVox is a great strategic fit for Windstream. The NuVox markets are contiguous to our properties, and the transaction bolsters our strategy to focus more on the business customer," said Jeff Gardner, Windstream president and CEO. "NuVox is a very strong company that has steadily delivered revenue growth and improved margins. These markets have the potential for good growth opportunities in the future."
Business and broadband revenues now represent more than half of Windstream's annual revenues of approximately $3.7 billion on a pro forma basis, which includes the acquisitions of NuVox, Lexcom and D&E Communications.
NuVox generated $565 million in revenue and $115 million in operating income in the twelve months ended Sept. 30.
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