Windstream To Acquire Broadview Networks In $227.5 Mln Deal

(RTTNews) - Windstream Holdings Inc. (WIN) said that it agreed to acquire Broadview Networks Holdings Inc., in an all-cash transaction valued at $227.5 million.

Broadview, headquartered in Rye Brook, N.Y., is a provider of cloud-based unified communications solutions to small and medium-sized businesses. The company offers a broad suite of cloud-based services under the OfficeSuite UC™ brand.

Windstream intends to finance the transaction with cash reserves and available revolving credit capacity.

Windstream expects to realize approximately $30 million in annual operating synergies within two years. The transaction will improve Windstream's balance sheet by reducing leverage through realization of synergies and will be accretive to free cash flow in the first year.

The boards of both companies unanimously approved the transaction. Broadview shareholders holding a majority of the company's shares also approved the transaction by written consent.

The transaction is expected to close in the third quarter of 2017, subject to customary closing conditions, including receipt of necessary federal and state regulatory approvals.