MSP TODAY NEWS

More CSP M&A: Windstream to Buy EarthLink for $1.1B

By Paula Bernier

So many service provider merger and acquisition announcements in so little time! The latest on the list are Windstream and EarthLink, which yesterday announced plans to merge in a $1.1 billion deal.

The goal in this case is to create a service provider with a broader national reach, a more expansive product portfolio, and better economies of scale.

The newly enlarged company, to retain the Windstream name, will operate a 145,000-fiber-route-mile network. It will offer Internet, network connectivity, managed services, SD-WAN, voice, and other services. And it expects to realize more than $125 million in annual operating and capital expense savings within 36 months of the close of the deal and says the merger creates net present value of about $900 million from synergies and tax benefits.

“The combination with EarthLink further advances Windstream’s strategy by creating a stronger, more competitive business to serve our customers while increasing free cash flow and reducing leverage,” said Windstream President and CEO Tony Thomas, who will remain in this role following the close of the deal. “With this transaction, we are combining two highly complementary organizations with closely aligned operating strategies and business unit structures.”

Following the close of the deal, which is expected in the first half of 2017,

key EarthLink management members are expected to join the combined company, and three of EarthLink’s existing directors will join the current Windstream board of directors.

News of this planned combination follows recent announcements that AT&T aims to buy Time Warner; Berkshire Partners LLC is taking a majority interest in Masergy Communications Inc.; BroadSoft has purchased VoIP Logic; CenturyLink is buying Level 3; Crown Castle bought FPL FiberNet; and private equity firm GTCR has snapped up Inteliquent, which it plans to combine with Onvoy.




Edited by Alicia Young

Executive Editor, TMC

SHARE THIS ARTICLE
Related Articles

The 2020 MSP Expo Conference Program Features the Latest Innovations & Best Business Practices for Staying Competitive

By: TMC    8/20/2019

TMC today announced the conference program for MSP Expo being held February 12-14, 2020 at the Greater Fort Lauderdale/ Broward County Convention Cent…

Read More

nexVortex Earns Inc. 5000 Spot for Ninth Year Running

By: Maurice Nagle    8/20/2019

nexVortex announced that for the ninth year straight the managed SIP Trunking and managed hosted voice provider has been named to the Inc. 5000 list o…

Read More

CoreDial Announced as Sponsor for 2020 ITEXPO and MSP Expo

By: TMC    8/8/2019

TMC announced today that CoreDial, a leading provider of cloud communications services, has joined ITEXPO and MSP Expo as a sponsor. The two collocate…

Read More

SkySwitch Brings Vectors 2019 to Orlando to Educate Channel on Rising UCaaS Opportunity

By: Erik Linask    8/6/2019

Skyswitch has announced Vectors 2019, its annual UCaaS user group conference, will take place at the Loews Sapphire Falls Resort in Orlando, Florida, …

Read More

Voyant Adds to Usability of its Customer and Partner UCaaS Portals

By: Erik Linask    7/31/2019

Today, Voyant took its next steps, announcing additional enhancements to its UCaaS portals for increased usability and accessibility for both end user…

Read More