The Federal Communications Commission has approved Windstream Corp.’s acquisition of PAETEC Holding Corp., the companies announced Tuesday.
“The merger creates a $6 billion company with nationwide reach and continues Windstream’s transformation to a next-generation communications and technology provider with a full suite of enterprise-focused solutions,” Windstream president and CEO Jeff Gardner said.
Little Rock, Ark.-based Windstream anticipates closing its $2.3 billion acquisition of Fairport, N.Y.-based PAETEC by Dec. 1.
The merger of PAETEC and Windstream will create a company with estimated annual revenues of $6.1 billion and EBITDA of $2.4 billion, with 70 percent of revenues deriving from business and broadband sales, Zachs Equity Research noted over the summer after the deal was announced.
Windstream provides high-speed Internet, voice and digital TV services to residential customers in 29 states and the District of Columbia. The company also provides various communications services to businesses and government agencies. As of Sept. 30, Windstream supported 1.35 million high-speed Internet customers, 449,000 video customers and 3.22 million access lines. The business-oriented PAETEC provides services in 48 states and the District of Columbia to roughly 51,000 business customers based on third-quarter results.