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Windstream completes acquisition of Hosted Solutions

December 3, 2010 by  

Web Host ServicesLittle Rock, Ark. — Windstream Corp. (Nasdaq: WIN) announced today 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. Windstream financed the transaction through cash and revolving credit borrowings.

Hosted Solutions, based in Raleigh, N.C., is a leading 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. Windstream now operates a total of 12 data centers in eight states.

Windstream 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.

Windstream 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.

About Windstream
Windstream Corp. (Nasdaq: WIN), headquartered in Little Rock, Ark., is an S&P 500 communications and technology company with operations in 24 states and about $4 billion in annual revenues. Windstream provides IPbased voice and data services, MPLS networking, data center and managed hosting services and communication systems to businesses and government agencies. The company also delivers broadband, digital
phone and high-definition TV services to residential customers primarily located in rural areas. For more information about Windstream, visit www.windstream.com.

About Hosted Solutions
Hosted Solutions is the East Coast’s premier provider of enterprise-class managed hosting solutions. Its high quality data center and managed hosting services, including a dedicated server offering, managed colocation and its exclusive Stratus Trusted Cloud™suite , maintain and protect customers’ mission-critical IT systems and applications, enabling them to reduce operating costs, lower the risk of downtime, focus on core competencies, and achieve their top business objectives. The company operates five SAS 70 Type II certified data centers in Boston MA, Charlotte NC, Raleigh NC, and Cary NC, providing best-of-breed data center operations with hardened physical infrastructure, the highest level of security. It also offers a complete managed services portfolio, including enterprise storage, network, OS management, middleware server management, DBA services, security and disaster recovery. Hosted Solutions is backed by Boston-based private equity firm ABRY Partners. www.hostedsolutions.com.

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