Windstream (NASDAQ:WIN) says it has agreed to sell its data center business to TierPoint, a national provider of cloud, colocation, and managed services, for $575 million in cash.
However, Windstream says it isn't getting out of the business entirely. The agreement with TierPoint includes a reciprocal partnership that will see the two companies sell their respective products and services to each other's prospective customers through referrals. Windstream says the arrangement will enable it to focus capital on its core telecom offerings and still serve data center and enterprise customers.
"Data center services will remain an integral component of our enterprise service offering," explained Tony Thomas, president and CEO of Windstream. "We expect the divested data center business to continue its significant growth under the leadership of TierPoint, and we look forward to partnering closely with them to provide advanced data center services to our enterprise customers."
The boards of both companies have approved the transaction and expect it to close within the next 2-4 months, subject to customary conditions and approvals.
For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer's Guide.
About the Author
Lightwave Staff
Through our integrated media portfolio, Lightwave’s editorial staff delivers content focused on broadband, fiber optics and optoelectronics, the technologies that enable the growth, integration and improved performance of voice, data and video communications networks and services. Our experienced editorial team provides trusted technology, application and market insights to corporate executives, department heads, project managers, network engineers and technical managers at equipment suppliers, service providers and major end-user organizations.