Windstream , a leading provider of advanced network communications and technology solutions announced it has completed its merger with EarthLink Holdings Corp., under which EarthLink shareholders receive 0.818 shares of Windstream common stock for each EarthLink share owned.
No fractional shares of Windstream common stock were issued in the merger, and EarthLink stockholders will receive cash in lieu of any fractional shares.
Both companies have satisfied all necessary customary closing conditions, including approval from shareholders of both Windstream and EarthLink. The combined company, which will retain the Windstream name, will be headquartered in Little Rock, Ark., and maintain offices in key U.S. markets.
“We are very pleased to announce the completion of our merger with EarthLink, which improves our competitiveness and ability to serve customers while increasing free cash flow and reducing leverage,” said Tony Thomas, president and chief executive officer at Windstream. “Our customers will benefit from our expanded national fiber footprint and enhanced products and services, including SD-WAN, UCaaS, network security, managed services and cloud connectivity. On behalf of everyone at Windstream, we welcome EarthLink and its talented team, and look forward to a seamless transition as we continue to drive value for all of our stakeholders.”
Windstream also announced it now expects to achieve more than $150 million in annual operating and capital expense synergies within 36 months of closing, an increase of $25 million over its initial estimates.
Windstream will hold a conference call at 7:30 a.m. CST on March 1, 2017, to discuss the completion of the merger and fourth-quarter and full-year 2016 results. Information on how to access the call is available at windstream.com/investors.
Windstream also announced three of EarthLink’s directors, Dr. Julie Shimer, Marc Stoll and Walter Turek, have been appointed to the Windstream board of directors, effective March 1, 2017. The appointments bring the total number of directors of the combined company’s board to 12.
Windstream Holdings, Inc. ,a FORTUNE 500 company, is a leading provider of advanced network communications and technology solutions for consumers, small businesses, enterprise organizations and carrier partners across the U.S. Windstream offers bundled services, including broadband, security solutions, voice and digital TV to consumers. The company also provides data, cloud solutions, unified communications and managed services to business and enterprise clients. The company supplies core transport solutions on a local and long-haul fiber-optic network spanning approximately 147,000 miles. Additional information is available at windstream.com.
David Avery, 501-748-5876
Christie Grumbos, 501-748-3666