Windstream agree to acquire Iowa Telecom for approximately $1.1 billion.
Iowa Telecom serves about 256,000 access lines, about 95,000 high-speed Internet customers and about 26,000 digital TV customers.
Windstream serves approximately 3 million access lines.
Iowa Telecom shareholders will receive 0.804 shares of Windstream stock and $7.90 in cash per each Iowa Telecom share under terms of the agreement approved by the boards of directors of both companies. Windstream expects to issue approximately 26.5 million shares of stock valued at approximately $269 million, based on the company's closing stock price on Nov. 23, 2009, and pay approximately $261 million in cash as part of the transaction.
- The Iowa Telecom deal represents Windstream's fourth acquisition in 2009. Other transactions include:
NuVox -- adding approximately 90,000 business customers in 16 states across the Southeast and Midwest.
Lexcom -- expanding operations in North Carolina.
D&E Communications -- adding approximately 160,000 access lines and about 46,000 high-speed Internet customers in Pennsylvania.
- Windstream was formed in 2006 through the spinoff of Alltel's landline business and merger with VALOR Communications Group.