Windstream, which provides data center and communications services in parts of North Carolina, is acquiring Internet and communications services provider Earthlink in a merger valued at more than $1 billion.
The deal includes an all-stock swap valued at $673 million.
Windstream also is absorbing Earthlink debt.
Both companies provide internet service, cloud computing and other services. The combined company will keep the Windstream name and be based at its headquarters in Little Rock, Arkansas. EarthLink Holdings Corp. is based in Atlanta.
The boards of both companies have approved the deal, which was announced early Monday before markets opened.
Earthlink shareholders will receive nearly 0.82 shares of Windstream for each Earthlink share, valuing Earthlink at $5.92 a share. That’s a 9 percent premium over Earthlink’s price of $5.42 as reported on Nov. 3 but less than Friday’s close of $6.22, notes The Wall Street Journal.
Rumors about the talks emerged Nov. 4.
