Windstream to Acquire Broadview Networks Holdings in $227.5M Deal

Windstream Holdings Inc. of Little Rock said Thursday that it has agreed to acquire Broadview Networks Holdings Inc. of Rye Brook, New York, in an all-cash transaction valued at $227.5 million.

Broadview is a private, cloud-based unified communications services provider to small and medium-sized businesses. The company offers a suite of cloud-based services under the OfficeSuite UC brand.

“Broadview’s unique, proprietary unified communications solutions will advance our product portfolio, improving our competitiveness and ability to provide enhanced services to business customers. The transaction also will enable us to leverage Broadview’s experienced salesforce and cloud operations across our national footprint,” said Tony Thomas, president and CEO of Windstream. 

Windstream (NYSE: WIN) said it will finance the deal with cash reserves and available revolving credit capacity. It expects realize about $30 million in annual operating synergies within two years.

More: See Windstream’s presentation about the deal to investors.

Windstream said the deal will improve its balance sheet “by reducing leverage through realization of synergies and will be accretive to free cash flow in the first year.” The deal is set to close in the third quarter; the boards of both companies unanimously approved the deal.

“Windstream’s nationwide footprint, extensive portfolio of service offerings, vast distribution and attractive customer base are a natural fit for our strategic direction,” Mike Robinson, president and CEO of Broadview, said. “We look forward to combining forces with their team to continue expanding our UCaaS business by delivering best-in-class services to customers across the country.”

Stephens Inc. of Little Rock and Deutsche Bank Securities Inc. are acting as financial advisers to Windstream; Troutman Sanders LLP is the company’s legal adviser.

On Monday, Windstream’s spinoff company, Uniti Group of Little Rock said it will acquire network provider Southern Light LLC of Mobile, Alabama, for about $700 million in cash and equity.