Windstream plans to acquire New York-based CLEC MassComm in an all-cash deal.
MassComm, which provides service in California, Connecticut, the District of Columbia, Florida, Illinois, Massachusetts, Michigan, New York, Pennsylvania and Texas, will become a wholly owned subsidiary of Windstream after the transaction closes–likely sometime in the second quarter.
According to an FCC filing (PDF), the proposed acquisition will expand Windstream’s portfolio and enhance competition.
“The combination of MassComm’s innovative services and customer base with Windstream’s larger CLEC operations and fiber network will enable the combined company to increase its competitiveness by expanding its portfolio of services, generating efficiencies that benefit customers, and serving more customers over its own facilities where it can,” Windstream said.
It added, “Because MassComm does not own any last-mile facilities, there is no concern that there will be a reduction in competition based on overlapping last-mile facilities. Instead, this transaction will enhance competition in the market for medium-sized business. By combining MassComm’s customer base with Windstream’s presence and fiber network, the combined company will have the opportunity to serve more of MassComm’s current customers on Windstream’s own last-mile facilities.”
MassComm’s customer base will be unaffected, it said.
“The transaction itself is not expected to adversely affect the rates or other terms of service that customers currently experience, nor is it expected to have any adverse effect on the already high quality of service that MassComm’s customers currently receive,” Windstream said.
Terms of the deal were not disclosed.
