Voice and data services provider Windstream Corp.(NASDAQ:WIN) reports that it has reached a deal to acquire Paetec Holding Corp.(NASDAQ:PAET) for about $891 million worth of stock.
The Little Rock, Ark.-based Windstream Corporation states the addition of Paetec Holding Corp. will enlarge its focus on business and broadband services.
The Fairport, N.Y.-based Paetec Holding Corporation provides voice and data services to businesses.
Under the conditions of the agreement, Paetec shareholders will get 0.460 shares of Windstream common stock for each of their Paetec shares.
The arrangement has been agreed upon by the boards of both companies.
Also, Windstream will refinance about $1.4 billion in Paetec debt. Paetec shareholders are expected to own about 13% of the combined company at closing.