Communications services provider Windstream, has entered into a definitive agreement to acquire Q-Comm, a privately held Overland Park, Kan based fiber transport and competitive local exchange carrier, in a transaction valued at approximately $782m.
Windstream expects to issue about 20.6 million common shares valued at $237m based on Windstream’s closing share price on August 17 of $11.49, and pay about $278m in cash consideration for outstanding equity interests in Q-Comm.
Windstream also will repay estimated Q-Comm debt balances of approximately $267m, net of cash acquired.
The transaction includes Q-Comm’s wholly owned subsidiaries Kentucky Data Link (KDL), a fiber services provider in 22 states, and Norlight, a local exchange services company, both based in Evansville, Ind.
Windstream president and CEO Jeff Gardner said that the transaction is build on the company’s strategy to become a next-generation telecom provider focused on broadband and enterprise customers.
"KDL’s extensive fiber network creates savings for us as well as opportunities to grow business revenues, particularly transport services for wireless carriers," Gardner said.
The boards of both companies have approved the transaction that is expected to close in the fourth quarter of 2010.
