Windstream 2012 Annual Report Download - page 102

F-4
ACQUISITIONS AND DISPOSITIONS
Recent transactions and their value to our business are discussed below. For financial details of each acquisition, refer to Note 3
of the financial statements.
Acquisitions
PAETEC - On November 30, 2011, we completed the acquisition of PAETEC, a communications carrier focused on business
customers. The PAETEC transaction enhances our capabilities in strategic growth areas, including IP-based communications
services, cloud computing and managed services. It significantly advances our strategy to drive top-line revenue growth by
expanding our focus on business and fiber services.
The PAETEC transaction:
• adds an attractive base of medium-to-large sized business customers;
• expands our existing business service offerings;
• provides opportunities for approximately $100.0 million in pre-tax operating cost and $10.0 million in capital
synergies;
• creates a nationwide fiber network, adding 36,700 fiber miles; and
• adds seven data centers.
Q-Comm - On December 2, 2010, we completed the acquisition of Q-Comm Corporation ("Q-Comm"). The transaction
included Q-Comm's wholly-owned subsidiaries Kentucky Data Link, Inc. ("KDL"), a regional fiber services provider with
30,000 fiber miles, and Norlight, Inc. ("Norlight"), a communications services provider with approximately 5,500 business
customers. This transaction significantly increased the scale of our fiber network, allowing us to reach more business customers
and compete for more wireless backhaul contracts. KDL's fiber network also allows for significant operating synergies,
allowing us to carry more traffic on our own network and avoid incremental spend to other carriers for this service.
Hosted Solutions - On December 1, 2010, we completed the acquisition of Hosted Solutions Acquisition, LLC ("Hosted
Solutions"), which operates data centers in the eastern United States. Hosted Solutions provides the infrastructure to offer many
advanced data services, such as cloud computing, managed hosting and other managed services, on a wide scale. As a result of
this acquisition, we added five state-of-the-art Statement on Standards for Attestation Engagements ("SSAE") 16 certified data
centers and approximately 600 business customers.
Iowa Telecom - On June 1, 2010, we completed the acquisition of Iowa Telecommunications Services, Inc. ("Iowa Telecom"), a
regional communications services provider. This acquisition added 247,000 voice lines, 96,000 high-speed Internet customers
and 25,000 video customers in Iowa and Minnesota. This acquisition provided us increased scale, synergies and expanded
operating presence in contiguous markets.
NuVox - On February 8, 2010, we completed the acquisition of NuVox Inc. ("NuVox"), a communications provider based in
Greenville, South Carolina. The acquisition of NuVox marked our first considerable move to execute our business-focused
growth strategy and was a critical point in our transformation from a traditional telephone company to a business-focused
provider of advanced data and communications services. In addition to the customers acquired and new services we were able
to offer, we retained a significant number of employees with experience geared towards business customers. The NuVox
acquisition added 104,000 business customers in the Southeastern and Midwestern United States.
Dispositions
On June 15, 2012, we completed the sale of the energy business acquired as part of PAETEC, which sells electricity to business
and residential customers, primarily in certain geographic regions in New York state, as a competitive electricity supplier for
approximately $6.1 million in total consideration. These operations were not central to our strategic goals in our core
communications business.