Menu

10/19/15 GLOBE NEWSWIRE via COMTEX Knowledge

Windstream to Sell Data Center Business for $575M


LITTLE ROCK, Ark., Oct 19, 2015 (GLOBE NEWSWIRE via COMTEX) —

Windstream WIN, +5.84% a leading provider of advanced network communications, today announced that it has entered into a definitive agreement with TierPoint, a leading national provider of cloud, colocation and managed services, to sell Windstream’s data center business in an all cash transaction for $575 million.

As part of the transaction, Windstream will establish an ongoing reciprocal strategic partnership with TierPoint, allowing both companies to sell their respective products and services to each other’s prospective customers through referrals. This structure will allow Windstream to focus capital on its core telecom offerings while continuing to offer traditional data center services to enterprise customers across a broader data center footprint.

“Data center services will remain an integral component of our enterprise service offering,” said Tony Thomas, president and CEO. “We expect the divested data center business to continue its significant growth under the leadership of TierPoint, and we look forward to partnering closely with them to provide advanced data center services to our enterprise customers.”

“This is a great strategic fit for TierPoint and our customers” - Jerry Kent, Chairman and CEO for TierPoint

“This is a great strategic fit for TierPoint and our customers,” said Jerry Kent, Chairman and CEO for TierPoint. “Windstream Hosted Solutions and its employees have earned a reputation for providing excellent customer service and innovative enterprise-class solutions. We value these team members as a key asset in the acquisition and their expertise adds to our strength and focus on providing a superior level of customer care. We’re also very pleased to enter into a long-term strategic partnership with Windstream, allowing both companies to leverage the expertise and respective strengths of our organizations.”

The boards of both companies have approved the transaction, which is expected to close within the next 2-4 months, subject to customary conditions and approvals.

The data centers being divested generated the following financial results:

  • (Dollars in millions) 3 Months Ended June 30, 2015 Second Quarter 2015 Annualized
  • Revenue $30.5 $122.0
  • Adjusted OIBDA $10.2 $40.8
  • Non-GAAP Financial Measures

A reconciliation of this measure to the most directly comparable GAAP measure is presented below:

  • (Dollars in Millions) 3 Months Ended Second Quarter
  • June 30, 2015 2015 Annualized
  • Operating loss under GAAP $(2.0) $(8.0)
  • Depreciation and amortization 12.0 48.0
  • Stock-based compensation 0.2 0.8
  • Adjusted OIBDA $10.2 $40.8
  • Additional Information

About Windstream

Windstream, a FORTUNE 500 company, is a leading provider of advanced network communications and technology solutions, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas. For more information, visit the company’s online newsroom at news.windstream.com or follow on Twitter at @WindstreamNews.

About TierPoint

TierPoint is a leading national provider of cloud, colocation and managed services designed to help organizations improve business performance and manage risk. With corporate headquarters in St. Louis, MO, TierPoint operates highly-redundant, carrier-neutral data centers in the states of Washington, Texas, Oklahoma, Pennsylvania, Maryland, New York, Massachusetts, Connecticut and Florida.


Related Tags

Windstream

All Research Tags

$DFT $DRT 2021 Data Center acquisitions 2024 Data Centers 2103 data center acquisition report 350 E Cermak AI AI Data Center AI Data Center Boom AI Data Center Consulting AI Data Center Growth AI Data Center Site Selection AI Data Centers AI Growth AI M&A AI Real Estate AI nuclear power data centers AT&T AWS AWS Cloud AWS Columbus AWS Data Centers AWS data center Amazon Cloud Amazon data center Artificial Intelligence Data Centers Ashburn Data Center Market Atlanta Data Center Leasing Atlanta Data Center Market Azure BC Partners buying Centurylink data centers Barron's Data Center Real Estate Bitcoin Mining North Carolina Bitcoin Mining Power Rates Bitcoin Mining Washington Blockchain Business Continuity Buys Data Center Buys Data Center 2018 Buys Data Center 2019 Buys Data Center 2020 C7 Data Center CIO CIO Insight CIOForum CONE CONE REIT Sale CONE Sale COR CTO Carter Validus REIT Carter Validus sells data centers Centurylink Data Centers Centurylink buys Level 3 Centurylink data center business Centurylink selling data centers Chanos Cloud Cloud Computing Cloud Data Centers Cloud Spending Colocation Columbus Data Center Market CoreSite Coresite Covid-19 Cryptocurrency Mining Power Cryptocurrency mining space CyrusOne CyrusOne Acquisition CyrusOne Atlanta data center CyrusOne Bidder CyrusOne Data Center Atlanta Cyxtera Technologies DCRE DLR DLR buys DFT DRT Dallas Data Center Activity Dallas data center Data Center Data Center AI Data Center Absorption Data Center Absorption 2021 Data Center Acquisitions Data Center Acquisitions 2019 Data Center Acquisitions Report 2018 Data Center Activity 2018 Data Center Broker Data Center Brokerage Data Center Cloud Demand Data Center Consolidation Data Center Construction Columbus Data Center Consulting Data Center Covid Data Center Development Data Center Growth Data Center Investment Data Center Investments Data Center Investments 2020 Data Center Land Data Center Leasing Data Center M&A Data Center Market Data Center Market 2021 Data Center Market Research Data Center Mergers & Acquisitions Data Center Multiple Data Center News Data Center Power Data Center Purchase Data Center REITs Data Center Real Estate Data Center Real Estate Investing Data Center Rent Data Center Report Data Center Research Data Center Tax Incentives Georgia Data Center investing Data Center leasing report Data Centers Data Centers 2019 Data Centers 2020 Data Centers For Sale Data center absorption 2018 Data centers DataBank DataCenters# Databank DevOps Digital Bridge Digital Realty Digital Realty Trust Digital Realty Trust Atlanta Digital Realty Trust Chicago Digital Realty Trust Dallas Digital Realty Trust acquires Dupont Fabros Digital Realty Trust merger Digital Realty buys Chicago data center Digital Realty buys Dupont Fabros. Dupont Fabros Dupont Fabros merger Durham Data Center EQIX Enterprise Data Centers Equinix Equinix Dallas Equinix buys Infomart Equinix buys Verizon Data Centers F5 Networks Facebook Atlanta Data Center Facebook Data Center Ft. Worth Data Center GI Partners GOOG GOOGL Gartner Georgia Data Center Legislation Global Switch Google Google Cloud Google Data Centers HPC Data Centers High Performance Computing Data Centers Hyperscale Hyperscale Data Centers Hyperscale data center locations Hyperscale data centers Hyperscale growth IBM IBM data centers IPFS IRM data center expansion Infomart Infomart Dallas Iron Mountain Iron Mountain Data Centers Iron Mountain buys Fortrust Iron Mountain buys IO Data Centers KKR Level 3 MSFT MapleTree buys data centers Meta Columbus Microsoft Microsoft Cloud Microsoft Data Center Microsoft data center NOVA Data Center market NOVA Hyperscale Data Centers NXTVn New Chicago Data Center New Jersey Data Center Northern Virginia Absorption Northern Virginia Hyperscale Data Centers Nuclear power data centers Nvidia Nvidia AI Data Centers Oracle Cloud Oracle data center Peak 10 Private Equity Data Centers Private equity data centers Public Cloud QTS QTS Data Center Atlanta QTS data center Redhat data center cloud Santa Clara Data Center Secondary Data Center Markets Sells Data Center Sells Data Center 2019 Sentinel Shaw Communications Switch Switch Data Center Atlanta Switch data center Atlanta T5 Data Center Atlanta Telefonica TierPoint TierPoint# Time Dotcom US Low Cost Power States US Power Grab US data center market report 2018 Vantage Vantage Data Centers Verizon ViaWest Virginia Beach Cable Landing Station Virginia Beach Data Center Park Virginia data center park Wall Street Journal Windstream Zayo ata center blockchain big data blockchain data center blockchain data storage blockchain file storage buys data center and colocation business buys data centers cloud data center cloud data centers data center data center acquisitions data center advisory data center broker data center consultant data center consulting data center for lease data center for sale data center investments data center leasing data center market data center market research data center news data center outage data center real estate data center sale leaseback data center sales data center tax incentives data center trends data centers data centers for sale delta data center delta outage dropbox data center emerging data center trends hybrid cloud hyperscale data centers north carolina data centers renewable nuclear energy data centers