Windstream sells data centre ops for USD 575 mln

News Broadband United States 20 OCT 2015
Windstream sells data centre ops for USD 575 mln

US operator Windstream has agreed to sell its data centre business to TierPoint for USD 575 million in cash.

Under the terms of the agreement, the two will also establish a strategic partnership which will enable them to sell their respective products and services to each other’s prospective customers through referrals. The structure will allow Windstream to focus capital on its core telecom offerings while continuing to offer traditional data centre services to enterprise customers across a broader data centre footprint.

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 centres being divested generated second quarter revenues at USD 30.5 million and adjusted OIBDA at USD 10.2 million, with full year revenues to end June amounting to USD 122.0 million and adjusted OIBDA to USD 40.8 million. The operating loss reached USD 2.0 million for the quarter and USD 8.0 million for the full year.

Categories:

Fixed

Companies:

Windstream

Countries:

United States

Tags:

Distribution - retail outlets, Hosting - cloud - data centres, Corporate strategy, Contract & orders, M&A buyouts & divestments

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