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.