Little Rock-based Windstream announced Monday that it will merge with EarthLink in an all-stock deal valued at $1.1 billion.
In a statement, the two firms said the combined company would remain in Little Rock under the Windstream name.
Tony Thomas, president and chief executive officer at Windstream said the move would create a "stronger, more competitive business to serve our customers while increasing free cash flow and reducing leverage."
“With this transaction, we are combining two highly complementary organizations with closely aligned operating strategies and business unit structures," he said in the statement. "We look forward to working with the talented EarthLink team to create significant benefits and drive value for all of our stakeholders.”
Together, the combined companies will have about 145,000 fiber route miles, which Windstream called "an extensive national footprint."
EarthLink shareholders will receive 0.818 of a share for each EarthLink stock they own. Windstream Holdings Inc. will issue about 93 million shares for the deal.
The deal is expected to close in the first half of next year.
A conference call is scheduled for 7:30 a.m. It can be accessed online or by calling (877) 374-3977 and using ID 99942553.
Check back for updates and read Tuesday's Arkansas Democrat-Gazette for full details.
The Associated Press contributed to this story.