Windstream Holdings Inc. and EarthLink Holdings Corp. have agreed to merge in an all-stock transaction valued at $1.1 billion, including debt, the companies said today in a joint news release. Windstream, based in Little Rock, Ark., expects to issue approximately 93 million shares of stock valued at about $673 million, based on the company’s closing stock price on Nov. 4. Upon closing of the transaction, Windstream shareholders will own approximately 51 percent and shareholders of Atlanta-based EarthLink will own approximately 49 percent of the combined company. The combined company will be based in Little Rock, with Tony Thomas serving as president and CEO and Bob Gunderman serving as chief financial officer. Key EarthLink management members are expected to join the combined company, and three of EarthLink’s existing directors will join the current Windstream board of directors, bringing the total number of directors of the combined company’s board to 12. Windstream acquired Iowa Telecom in November 2009. Also today, Windstream reported total revenues and sales of $1.34 billion and total service revenues of $1.32 billion in the third quarter, compared with $1.5 billion and $1.45 billion, respectively, year-over-year. Operating income was $129 million, compared with $179 million in the same period a year ago. The company reported a net loss of $66 million, or 72 cents per share, compared with a loss of $7 million, or 8 cents per share, a year ago.