Windstream says PAETEC will complement its service area
(WEB HOST INDUSTRY REVIEW) –Telecommunications provider Windstream announced on Thursday that it has completed its acquisition of web hosting provider PAETEC Holding Corp.
The deal, first announced in August, is Windstream’s second major acquisition in the hosting space in the past year. In December 2010, Windstream acquired web host Hosted Solutions for $310 million cash. Windstream purchased PAETEC for $863 million, and assumed $1.4 billion in PAETEC debt.
Under the agreement, PAETEC shareholders received 0.460 shares of Windstream stock for each PAETEC share owned at closing, according to a press release.
According to a report by the Democrat and Chronicle, Windstream will eliminate about 280 jobs over the next few months as part of its restructuring to accommodate the PAETEC acquisition. SVP of business and financial services for Windstream, Joe Marano, says these cuts are mostly redundant positions at the corporate level in human resources, marketing and accounting. Nine of 22 senior executives of PAETEC will remain, the report says. Windstream has 14,500 employees.
The combined company controls about 100,000 miles of fiber in North America, according to a post on Windstream’s blog.
In the post, John Leach, executive vice president of business sales at Windstream, says the acquisition of PAETEC brings enterprise-level expertise and product offerings, and its customer service aligns with Windstream’s own service commitments. He also says that PAETEC’s service area “perfectly” complements its own.
PAETEC provides cloud, colocation, data backup and recovery, dedicated server, hosted exchange, managed storage, shared web hosting, and VPS.
About Nicole Henderson
Nicole Henderson writes full-time for the Web Host Industry Review where she covers daily news and features online, as well as in print. She has a bachelor of journalism from Ryerson University in Toronto, and has been writing for the WHIR since September 2010. You can find her on Twitter @NicoleHenderson.
No related posts.
