Windstream adds Iowa Telecommunications to its acquisition cart

Although it has not swallowed up a larger competitor or acquired an RBOC's rural lines, Windstream is just as keen on growing its business through acquisitions. Its latest move to acquire Iowa Telecom is a continuation of that trend.

Under the terms of the agreement, Windstream will acquire Iowa Telecommunications for $530 million in stock and cash. Iowa Telecom stockholders will get 0.804 shares of Windstream and $7.90 in cash for each share of Iowa Telecom. Through this latest acquisition, Windstream will not only expand its current footprint into both Iowa and Minnesota, but also add 256,000 voice access lines, 95,000 high speed DSL customers and 26,000 digital TV customers.  

Earlier this month Windstream reached an agreement to acquire CLEC NuVox Communications, and now Iowa Telecommunications is the fourth acquisition Windstream has made this year as part of a $1.3 billion program to grow the company through acquiring other smaller-sized service providers.

"Our whole investment thesis was to grow scale in rural America," said Jeff Gardner, Windstream's Chief Executive in a Wall Street Journal article. "I still think there's a great deal of consolidation left with smaller players, where the pressure is the most obvious."

For more:
- Wall Street Journal has this article
- see this map of Windstream acquisitions

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