Monday, May 28, 2007

Windstream to Acquire CT Communications, Adding Lines in Rural U.S.

Windstream agreed to acquire all of the outstanding shares of CT Communications (NASDAQ: CTCI), in a deal valued at $585 million ($31.50 per share in cash, which represents a 31 percent premium to CT Communications' previous 30-day trading average). Windstream intends to finance the acquisition with debt and existing cash.

Windstream provides voice, broadband and entertainment services to customers in 16 states. It serves approximately 3.2 million access lines and has about $3.2 billion in annual revenues.

The acquisition of CT Communications will add approximately 158,000 access lines and 29,000 broadband customers. CT Communications serves residential and business customers located primarily in North Carolina. The deal will nearly double Windstream's presence in North Carolina.

  • In July 2006, Alltel completed the spin off its wireline business, which was merged with VALOR Communications Group to create Windstream, a major wireline operator focused on the rural U.S. market.

  • Windstream is based in Little Rock, Arkansas.

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