Windstream Corp., a provider of phone, high-speed Internet and high-definition digital TV services to customers in 16 states, has entered into a definitive agreement to acquire Iowa Telecommunications Services, Inc., in a transaction valued at approximately $1.1 billion.

"These are well-run, profitable properties in very rural service areas that expand our presence in the Upper Midwest and grow our free cash flow per share," said Jeff Gardner, president and CEO of Windstream (News - Alert).

Alan L. Wells, Iowa Telecom Chairman and CEO, also said that this is an excellent transaction for the shareholders, and for customers that the company serves.

 

"Windstream is a leader in our industry, and Jeff Gardner and his team have done an outstanding job of profitably growing their business in challenging times. Windstream shares our commitment to both customer service and shareholder value, and we're very pleased that our company will be joining the Windstream organization," said Wells.

Iowa Telecom provides communications services to residential and business customers in Iowa and Minnesota. The company has approximately 256,000 access lines, about 95,000 high-speed Internet customers and about 26,000 digital TV customers.

The transaction is expected to close in mid-2010, subject to certain conditions, including necessary approvals from federal and state regulators and Iowa Telecom shareholders.

Jeff Gardner said that Windstream has extensive experience with successfully integrating new properties.

The transactions the company has announced this year are scheduled to close in an orderly fashion over a period of time providing the opportunity for very manageable integrations, Gardner said.

"Each of these companies is extremely well run, and we are very far along in our integration planning.”