Nearly a decade post-spinoff, Uniti has finalized a merger agreement with Windstream, uniting to cater to a combined customer base exceeding 1.1 million and serving 1.5 million existing homes, notably concentrated in the Midwest and Southeast regions.
“As a combined company, we will continue our disciplined growth trajectory while expanding FTTH buildouts and significantly improving our overall financial profile,” commented President and Chief Executive Officer of Uniti, Kenny Gunderman. “We look forward to working with Windstream to create a national fiber powerhouse that will continue to bridge the digital divide for our customers.”
Strategic and Financial Benefits of the Merger
Anticipated to be finalized in the latter half of 2025, the merger will grant Uniti shareholders roughly 62% ownership of the combined company's outstanding common equity, with Windstream shareholders retaining approximately 38%.
The merger combines Uniti’s national wholesale owned fiber network with Windstream’s FTTH business to create a premier insurgent fiber provider in the US. Having said that, the combined company, with its scaled facilities-based infrastructure platform, is believed to be uniquely positioned within Tier II and III markets throughout the US.
Furthermore, the merged entity foresees advantages in an improved free cash flow outlook, empowering it to potentially extend its FTTH infrastructure to an additional one million households.
Aiming to remove several dis-synergies which exist in the current landlord/tenant relationship, the merger aligns the two companies’ capital allocation objectives to improve focus and drive results. This union is anticipated to generate up to USD 100 million of the targeted annual opex synergies and USD 20-30 million of the targeted annual capex savings within 36 months of closing.
Leveraging a broadened national platform and premium fiber assets, this transaction substantially amplifies the potential for strategic initiatives, fostering significant value creation.
Combined Company’s Leadership
The merged entity will retain the name Uniti, maintaining its headquarters in Little Rock, Arkansas. Helmed by an experienced management team embodying the strengths of both entities, Uniti will be led by PCEO Kenny Gunderman and CFO Paul Bullington from Uniti, supported by key executives from Windstream who will continue to play pivotal roles in the combined company's leadership.