Uniti and Windstream to merge

Uniti Group Inc. announced on May 3 that it has entered into a definitive agreement to merge with Windstream Holdings II, LLC. The merger will combine Uniti’s national wholesale-owned fiber network with Windstream’s fiber-to-the-home business. The company reports that this will uniquely position it within Tier II and III markets throughout the United States.

Kenny Gunderman, Uniti president and CEO, said in a press release, “As a combined company, we will continue our disciplined growth trajectory while expanding FTTH buildouts and significantly improving our overall financial profile. The demand for fiber broadband has never been greater, and Uniti is now expanding its reach into FTTH with an attractive scaled platform. The combination of Uniti and Windstream also removes several dis-synergies that exist in the current landlord/tenant relationship and greatly enhances Uniti’s optionality for strategic initiatives.”

Uniti reports that the combined company will initially serve more than 1.1 million customers and 1.5 million existing homes passed and will have a strong presence in the Midwest and Southeast. Additionally, an enhanced free cash flow profile will allow the company to expand its FTTH build by up to 1 million additional households.

Gunderman will lead the combined company, along with Uniti’s CFO, Paul Bullington. Members of Windstream’s management team are expected to remain with the combined company as well, which will continue to operate as Uniti and be headquartered in Little Rock, Arkansas.

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