By David Gross
Windstream announced yesterday that it had closed its $310 million acquistion of Hosted Solutions. Windstream paid cash for the company, and financed the purchase through its own cash and a revolving line of credit. Like Cincinnati Bell's purchase of CyrusOne, this deal marks a departure from the standard video and bandwidth offerings typical for an independent local phone company.
While CyrusOne is focused on big Texas markets, Hosted Solutions is focused on three markets that classify as tier 2 or 3 within the data center market: Charlotte, Raleigh/Durham, and Boston. The deal brings an additional 68,000 square feet of data center space, and 600 new customers to Windstream. Not unlike Savvis, Hosted Solutions offers a mix of colocation and managed services.