Windstream to Acquire Q-Comm, Double Fiber Reach
Posted by Jesse Ward on Thursday, August 19, 2010 · 
·
· 
Windstream has announced yet another new acquisition. The company has agreed to acquire Q-Comm Corp., a privately held regional fiber network and CLEC based in Overland Park, Kan., in a transaction valued at approximately $782 million.
Windstream will inherit two subsidiary companies from Q-comm’s holdings: Kentucky Data Link (KDL) and Norlight. KDL provides long-haul and metropolitan fiber services to a diverse customer base, primarily serving wireline and wireless carriers, as well as the large enterprise, government, education and medical markets. KDL’s contiguous fiber network spans nearly 30,000 fiber route miles in 22 states. Norlight is a CLEC that serves approximately 5,500 small and medium size business customers primarily in the Midwest.
“This transaction builds on Windstream’s strategy to become a next-generation telecom provider focused on broadband and enterprise customers,” said Jeff Gardner, president and CEO of Windstream. “KDL’s extensive fiber network creates savings for us as well as opportunities to grow business revenues, particularly transport services for wireless carriers.”
The deal more than doubles the amount of fiber Windstream owns. KDL’s fiber assets complement Windstream’s previously announced initiative to upgrade and expand its core and backhaul fiber network.
To fund the deal, Windstream will issue about 20.6 million common shares and pay about $278 million in cash. In addition, Windstream will repay about $267 million in Q-Comm debt. Although Windstream expects to have enough cash to fund the acquisition, the company said it may choose to raise debt financing in the future.
The boards of both companies have approved the transaction, which is expected to close in the fourth quarter of 2010, subject to certain conditions, including necessary approvals from federal and state regulators.
Q-Comm is the latest in Windstream’s acquisition parade, which includes Iowa Telecom, NuVox, D&E Communications, and Lexcom.
View the release.
Related posts: