Communications and technology solutions provider Windstream Holdings Inc. (Windstream) has sold its data center business to colocation data center services provider
TierPoint LLC (TierPoint). The deal, which cost $575 million, was formally finalized earlier this week.
Windstream, which has headquarters in Little Rock, Arkansas, United States, specializes in voice and data network communications alongside managed services made available to companies in the United States. The company will use funds from the deal to finance debt reduction and to finance “Project Excel” – a $250 million project designed to upgrade its broadband capabilities. Post-acquisition the two companies will sell each others’ services to their respective customers.
TierPoint, which was established in 1995, has data centers across the United States in areas that include Arkansas, Connecticut, Florida, Illinois, Maryland, Massachusetts, New York, North Carolina, Oklahoma, Pennsylvania, Tennessee, Texas and Washington. The company’s services extend to cloud and colocation offerings alongside managed services, DDoS protection, enterprise hosting and data center services. By acquiring Windstream’s data center business the company can now operate in Chicago.
“This is a great strategic fit for TierPoint and our customers,” explained TierPoint’s CEO and Chairman, Jerry Kent. “Windstream Hosted Solutions and its employees have earned a reputation for providing excellent customer service and innovative enterprise-class solutions. We value these team members as a key asset in the acquisition and their expertise adds to our strength and focus on providing a superior level of customer care. We’re also very pleased to enter into a long-term strategic partnership with Windstream, allowing both companies to leverage the expertise and respective strengths of our organizations.”
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