Monday, May 31, 2010

Windstream Completes acquisition of Iowa Telecom

Windstream completed its acquisition of Iowa Telecommunications Services, Inc. in a transaction valued at approximately $1.2 billion.

As of March 31, 2010, Iowa Telecom provided service to approximately 249,000 access lines, 96,000 high-speed Internet customers and 27,500 digital TV customers in Iowa and Minnesota.

Windstream said the deal will provide it with increased scale and annual synergies of approximately $35 million in operating expenses and capital expenditure savings. The transaction also includes tax assets with an estimated net present value of approximately $130 million.

Iowa Telecom Chairman and CEO Alan Wells was appointed to the Windstream board of directors effective with the closing of the transaction.