Digital infrastructure provider Uniti Group has announced that it has signed a definitive merger agreement with Windstream, a provider of telecom services in 18 US states. Windstream is a privately held company headquartered in Arkansas and operates three brands: Kinetic, Windstream Enterprise and Wholesale of wind streams.
Also read: Kinetic will bring fiber optic internet to 16,000 locations in Lowndes County, Georgia
Details of the merger agreement
Under the terms of the agreement, Uniti shareholders will own approximately 62 percent of the combined company, and Windstream shareholders will own approximately 38 percent of the outstanding common stock. Elliott Investment Management (Elliott) is Windstream's largest shareholder and also the largest investor in Uniti.
The merger will combine Uniti's national fiber optic network, which is owned by the wholesaler, with Windstream's fiber-to-the-home network.FTTH) company, creating a leading fiber optic provider in the US. The combined company will initially serve more than 1.1 million customers and cover 1.5 million existing homes, with a particularly strong presence in the Midwest and Southeast.
Strategic positioning
The combined company will have a unique positioning within Tier II and III markets in the U.S., increasing the potential for strategic initiatives, the partners said.
In addition, the combined company will have the ability to expand its FTTH build to include up to 1 million additional households. The merged entity will continue to operate as Uniti and will be headquartered in Little Rock, Arkansas, the official press release said.
Also read: Kinetic becomes the largest 8 Gbps internet provider in the US
“As a combined company, we will continue our disciplined growth trajectory, while expanding FTTH buildouts and significantly improving our overall financial profile. Demand for fiber broadband has never been higher and Uniti is now expanding its reach into FTTH with an attractively scaled platform.” United said.
“The combination of Uniti and Windstream also eliminates several dis-synergies that exist in the current landlord-tenant relationship and significantly expands Uniti's capabilities for strategic initiatives. We look forward to working with Windstream to create a national fiber optic powerhouse that will continue to bridge the digital divide for our customers,” United added.
Expected timeline
The merger is expected to close in the second half of 2025, subject to closing conditions, including the receipt of regulatory approvals and Uniti shareholder approval.
As of March 31, 2024, communications infrastructure provider Uniti owns approximately 141,000 fiber route miles, 8.5 million fiber beach miles and other communications real estate in the United States.
