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Windstream (WIN) to Acquire MassComm, Boost Fiber Suite

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Per a FierceTelecom report, Windstream Holdings Inc has inked a deal to acquire MassComm, Inc.

MassComm is a privately-held, New York-based competitive local exchange carrier (CLEC). The company provides telecommunications and connectivity management, consultation and development solutions for voice, data and networking technologies to mid-sized global enterprise customers. The CLEC carrier serves California, Connecticut, the District of Columbia, Florida, Illinois, Massachusetts, Michigan, New York, Pennsylvania and Texas.

The proposed deal will be an all-cash transaction, wherein the leading local exchange carrier will purchase all of the issued and outstanding shares of MassComm. On completion, MassComm will become a wholly-owned subsidiary of Windstream.

Subject to customary regulatory approvals (both federal and state) and closing conditions, the deal is expected to conclude in second-quarter 2018. The financial terms of the deal have been kept under wraps.

The buyout of MassComm will boost Windstream’s expanding fiber-based network. Moreover, MassComm’s existing customers can avail Windstream’s broader on-net portfolio of network access options which are provided to support software-defined wide-area network (SD-WAN) and other managed services. 

Post completion of the deal, the merged entity will target MassComm’s current customers with Windstream’s facilities. The deal is expected to not affect the rates or other terms of services, availed by Windstream’s existing customers.

Windstream claims that the buyout will intensify competition in the market for medium-sized business.

The proposed acquisition of MassComm may not be as important as that of EarthLink or Broadview. But it is likely to expand Windstream’s managed services customer base.

 Zacks Rank & Price Performance

Currently, Windstream carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Windstream portrays an impressive price performance. In the past three months, shares of the company have returned 6.8% compared with the industry’s rally of 1.3%.

 

 

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