(Reuters) - Windstream Holdings Inc said on Monday it would buy fellow U.S. telecommunications company Earthlink Holdings Corp 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.
Reporting by Aishwarya Venugopal in Bengaluru; Editing by Sai Sachin Ravikumar