M&A

3 November, 2009

UPDATE 1-Windstream to buy Nuvox for $643 million

* Deal incl. $280 mln cash, $183 mln stock, $180 mln debt

* Adds 90,000 buiness customers to Windstream

* Windstream shares rise 6 cents to $9.85

NEW YORK, Nov 3 (Reuters) - Windstream Corp (WIN.N) said on Tuesday it would buy privately held telecommunications provider NuVox Inc for $463 million, in a cash and stock and excluding debt, in order to add new business customers.

Windstream said the deal would be worth a total of $643 million, including the assumption of $180 million debt, $280 million in cash and $183 million worth of Windstream shares.

The purchase of Nuvox, which brought in $561 million revenue in the last year, is expected to reduce Windstream expenses by $30 million in the first full year.

Windstream said that acquiring Greenville, South Carolina-based Nuvox would also give it 90,000 new business customers in 16 states across the U.S. Southeast and Midwest.

Windstream plans to finance the deal from its existing cash and revolving credit facility when the acquisition is expected to close in the first half of 2010 if it meets certain conditions, including regulatory approval.

Oppenheimer & Co. Windstream's financial adviser and Kutak Rock LLP was its legal adviser on the deal. Deutsche Bank and Wells Fargo were financial advisors for NuVox. Cravath, Swaine & Moore LLP were NuVox legal advisers. (Reporting by Sinead Carew, editing by Leslie Gevirtz)

Source: http://www.reuters.com