Windstream (NASDAQ: WIN) says it has sold fiber network infrastructure in Minnesota to Arvig Enterprises, Inc. for $49.5 million in cash. The two companies have signed a second agreement that will see Arvig buy additional fiber-optic network assets in Nebraska for $11 million. That deal is expected to close in the first quarter of 2019.
Arvig described the purchase as entailing Windstream’s “excess out-of-territory fiber network in Minnesota.” Windstream will continue to use the fiber infrastructure to serve its clients in those two states, however. “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,” explained Bob Gunderman, chief financial officer and treasurer for Windstream.
Arvig, established in 1950, operated a 10,500-mile fiber network within the Minnesota state lines before these deals came about. “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.”
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