Arvig Buys Windstream Fiber Assets in Minn./Neb.
LITTLE ROCK, Ark. -- Windstream (NASDAQ: WIN), 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 Communications Inc. (Nasdaq: WIN)