Windstream completes acquisition of D&E Communications

Windstream has completed the acquisition of D&E Communications, in a transaction valued at approximately $333 million.

D&E Communications shareholders received 0.650 shares of Windstream stock and $5 in cash per each D&E share under terms of the agreement.

Windstream issued approximately 9.4 million shares of stock valued at $95 million and paid approximately $74 million in cash as part of the transaction. Windstream also assumed estimated net debt of approximately $164 million and financed the acquisition with existing cash and current capacity on its revolving credit agreement.

Windstream has added rural properties in Pennsylvania under the transaction. D&E Communications has approximately 114,000 incumbent local exchange carrier (ILEC) access lines and about 46,000 high-speed internet customers. High-speed internet service is available to 100% of D&E's ILEC lines, nearly half of which can offer speeds up to 10Mbps.

Windstream estimates the transaction will be accretive to free cash flow in the first full year after expected annual synergies of approximately $25 million in operating expenses and capital expenditure savings.

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Related terms: acquisition, local, pennsylvania