Dec, 2010 : Windstream Completes Acquisition of Hosted Solutions
📅 - Company completes the acquisition in an all-cash transaction valued at $310 million.
Windstream Corp., a telecommunications service provider, yesterday announced that it has completed its acquisition of Hosted Solutions Acquisition, LLC (Hosted Solutions) from ABRY Partners in an all-cash transaction valued at $310 million. The company adds that it financed the transaction through cash and revolving credit borrowings.
It mentions that Hosted Solutions, based in Raleigh, N.C., is a regional data center and managed hosting provider focused on enterprise-class Infrastructure as a Service (IaaS) solutions (managed hosting, managed services, colocation, cloud computing and bandwidth) for small and medium-sized business customers as well as large enterprises. Hosted Solutions operates five state-of-the-art SAS 70 Type II certified data centers in Raleigh, N.C.; Charlotte, N.C., and Boston and serves more than 600 customers. The company avers that it now operates a total of 12 data centers in eight states.
It claims that the company will be able to fully amortize the purchase price goodwill over 15 years, resulting in expected tax benefits with an estimated net present value of $52 million. It estimates the transaction will be accretive to free cash flow in the first year after expected annual synergies of approximately $1.5 million in operating expense savings and excluding integration charges. The company says that The Bank Street Group LLC and Stephens Inc. acted as its financial advisers and Kutak Rock LLP acted as its legal adviser on the transaction, while Kirkland & Ellis LLP acted as legal adviser to ABRY Partners and Hosted Solutions.
Windstream Corp., a telecommunications service provider, yesterday announced that it has completed its acquisition of Hosted Solutions Acquisition, LLC (Hosted Solutions) from ABRY Partners in an all-cash transaction valued at $310 million. The company adds that it financed the transaction through cash and revolving credit borrowings.
It mentions that Hosted Solutions, based in Raleigh, N.C., is a regional data center and managed hosting provider focused on enterprise-class Infrastructure as a Service (IaaS) solutions (managed hosting, managed services, colocation, cloud computing and bandwidth) for small and medium-sized business customers as well as large enterprises. Hosted Solutions operates five state-of-the-art SAS 70 Type II certified data centers in Raleigh, N.C.; Charlotte, N.C., and Boston and serves more than 600 customers. The company avers that it now operates a total of 12 data centers in eight states.
It claims that the company will be able to fully amortize the purchase price goodwill over 15 years, resulting in expected tax benefits with an estimated net present value of $52 million. It estimates the transaction will be accretive to free cash flow in the first year after expected annual synergies of approximately $1.5 million in operating expense savings and excluding integration charges. The company says that The Bank Street Group LLC and Stephens Inc. acted as its financial advisers and Kutak Rock LLP acted as its legal adviser on the transaction, while Kirkland & Ellis LLP acted as legal adviser to ABRY Partners and Hosted Solutions.
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