Windstream to sell data center business to TierPoint

Oct. 20, 2015
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.

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.

Sponsored Recommendations

March 12, 2025
Join us for an engaging discussion with industry experts on the intersection of AI and optics. Moderated by Sean Buckley, editor-in-chief of Lightwave+BTR, this panel will explore...
March 25, 2025
Explore how government initiatives and industry innovations are transforming rural broadband deployments, overcoming cost and logistical challenges to connect underserved areas...
April 9, 2025
As transceiver speeds increase, so do thermal challenges. Discover key insights into innovative cooling solutions that ensure optimal performance and reliability.
April 10, 2025
The value of pluggable optics in open-line systems is also becoming more apparent. This webinar describes this trend and explores how such modules can best be employed. Register...