Windstream, EarthLink to Combine in $673 Million All-Stock Deal

Windstream Holdings, Inc. and EarthLink Holdings Corp. agreed to a $673 million all-stock merger, combining the network service providers as they look to trim costs amid declining revenue.

Windstream—which provides cloud computing, broadband and voice services—said it expects to issue roughly 93 million shares to complete the deal. EarthLink also provides cloud networking as well as other network services. The companies said the deal is valued at about $1.1 billion including debt. Upon closing of the transaction, expected in the first half of 2017, Windstream shareholders will own 51% of the combined company and EarthLink shareholders will own 49%. The companies believe the increased scale of a combined company—which will keep the Windstream name—will give it the leverage to compete while cutting more than $125 million in annual operating and capital expenses through synergies.