Windstream Corp., a spinoff of Alltel, said Tuesday it will buy ILEC CT Communications Inc. for approximately $585 million.

Windstream plans to purchase all of CT Communications outstanding shares for $31.50 apiece, using debt and existing cash. The deal should close in the second half of 2007, the carrier said, once it secures shareholder and regulatory approval.

Windstream is headquartered in Little Rock, Ark. CT Communications, formerly known as Concord Telephone Co., is based in Concord, N.C.

Adding markets in North Carolina fits Windstreams growth strategies, executives said, noting the deal will give Windstream approximately 3.4 million access lines and 744,000 broadband customers. Windstream also expects to save $30 million annually thanks to reduced capex spending and other cuts.

Stephens Inc. and Kutak Rock LLP acted as financial and legal advisers to Windstream on the transaction. Raymond James & Associates Inc. and Moore & Van Allen PLLC acted as financial and legal advisors to CT Communications.

Windstreams stocks were up 7 cents on the acquisition news, trading for $14.99 on the New York Stock Exchange. CT Communications shares were selling for $31.28, down from $31.44.

CT Communications www.ctc.net
Windstream Corp. www.windstream.com