LITTLE ROCK, Ark., Dec. 18, 2018 (GLOBE NEWSWIRE) — Windstream (NYSE:WIN, news, filings), a leading provider of advanced network communications and technology solutions, today announced that it has sold certain fiber assets in Minnesota to Arvig Enterprises, Inc. (“Arvig”), a Minnesota-based provider of telecommunications and broadband services. The all-cash transaction is valued at $49.5 million.
Windstream also announced that it has entered into a definitive agreement to sell additional fiber assets in Nebraska to Arvig for $11 million. The Nebraska sale is expected to close in the first quarter of 2019.
As part of the transactions, Windstream will establish a fiber network relationship with Arvig, allowing Windstream to utilize the assets to continue to sell its products and services in Minnesota and Nebraska.
“These transactions monetize latent dark fiber assets in Minnesota and Nebraska, lower capital requirements in each state and allow us to focus on our core network offerings with minimal change to our operations going forward. The structure also sets a roadmap for future fiber monetization across our footprint,” said Bob Gunderman, chief financial officer and treasurer for Windstream.
“Expanding our broadband footprint is core to our strategic priorities and bolsters our fiber assets throughout Minnesota and across the Midwest,” said David Arvig, vice president and chief operating officer at Arvig. “The additional Nebraska transaction will provide a critical link for our network beyond Minnesota supporting our continued growth throughout the region.”
Charlesmead Advisors, LLC, acted as exclusive financial advisor to Arvig in connection with this transaction.
Windstream Holdings, Inc. (NASDAQ: WIN), a FORTUNE 500 company, is a leading provider of advanced network communications and technology solutions. Windstream provides data networking, core transport, security, unified communications and managed services to mid-market, enterprise and wholesale customers across the U.S. The company also offers broadband, entertainment and security services for consumers and small and medium-sized businesses primarily in rural areas in 18 states. Services are delivered over multiple network platforms including a nationwide IP network, our proprietary cloud core architecture and on a local and long-haul fiber network spanning approximately 150,000 miles. Additional information is available at windstream.com or windstreamenterprise.com. Please visit our newsroom at news.windstream.com or follow us on Twitter at @Windstream or @WindstreamBiz.
Established in 1950, Arvig is the largest independent telecommunications provider in the state of Minnesota. The company has a 10,500-mile fiber network throughout the state of Minnesota and provides services to telecommunications companies, wireless carriers and to 46,000 internet customers in more than half of Minnesota’s counties. In addition to broadband services, Arvig also provides business phone systems, security, managed IT and a variety of other services. It serves multiple industries and has completed projects for numerous schools, resorts, financial institutions, hospitals and more. For additional information, visit Arvig online at arvigbusiness.com
Arvig Media Contact:
Lisa Greene, Director of Marketing
Arvig | 150 Second Street SW, Perham, MN 56573
Windstream Media Contact:
David Avery, 501-748-5876
Windstream Investor Contact:
Chris King, 704-319-1025
Source: Windstream Holdings, Inc.