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US telecom firms Windstream, Earthlink to merge

Network cables are plugged in a server room.
Michael Bocchieri | Getty Images
Network cables are plugged in a server room.

Windstream said on Monday it would buy fellow U.S. telecommunications company Earthlink in an all-stock deal valued at about $1.1 billion, including debt.

EarthLink shareholders will receive 0.818 Windstream shares for each share they own.

Windstream shareholders will own about 51 percent of the combined company when the deal closes, while EarthLink shareholders will own about 49 percent, the companies said.

Reuters reported last week that the two companies were in talks to merge.