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Home / Business / Windstream to buy Paetec in deal worth about $891M

Windstream to buy Paetec in deal worth about $891M

LITTLE ROCK, Ark. — Voice and data services provider Windstream says it’s reached a deal to buy Paetec Holding for about $891 million in stock.

Little Rock, Ark.-based Windstream Corp. says the addition of Paetec Holding Corp. will expand its focus on business and broadband services.

Fairport-based Paetec provides voice and data services to businesses.

Under the terms of the deal, Paetec shareholders will get 0.460 shares of Windstream common stock for each of their Paetec shares.

The deal has been approved by the boards of both companies. Windstream expects to issue about 73 million shares worth $891 million, based on its Friday closing stock price.

Windstream also will assume or refinance about $1.4 billion in Paetec debt. Paetec shareholders are expected to own about 13 percent of the combined company at closing.