LITTLE ROCK, Ark. -- Windstream Corp. announced today that it has entered into a definitive agreement with ABRY Partners to acquire Hosted Solutions Acquisition, LLC (Hosted Solutions) in an all-cash transaction valued at $310 million.

Hosted Solutions, based in Raleigh, N.C., is a leading regional data center and managed hosting provider focused on enterprise-class Infrastructure as a Service (IaaS) solutions (managed hosting, managed services, colocation, cloud computing and bandwidth) for small and medium-sized business customers as well as large enterprises. The company serves more than 600 customers and has approximately 125 employees.

The acquisition of Hosted Solutions will transform Windstream's data center business, increasing the scale and scope by adding five state-of-the-art SAS 70 Type II certified data centers in Raleigh, N.C.; Charlotte, N.C., and Boston with a total of 68,000 square feet of data center capacity. As a result, Windstream will have a combined total of 12 data centers across the country.

Separately, Windstream reported its third quarter results, including total revenues of $966 million, up 32% year over year; operating income of $270 million, up 20% and net income of $85 million, a 7% increase.

Windstream Communications Inc. (Nasdaq: WIN)