Windstream to sell data center business for $575 million
The company says it remains committed to providing data center services for enterprise customers through strategic partnerships.
Windstream (NASDAQ: WIN) announced that it has entered into a definitive agreement with TierPoint, a national provider of cloud, colocation and managed services, to sell Windstream’s data center business in an all cash transaction for $575 million.
"Data center services will remain an integral component of our enterprise service offering," says Tony Thomas, president and CEO of Windstream. “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.”
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."
“This is a great strategic fit for TierPoint and our customers,” adds 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.