Windstream (News - Alert) announced this week that the company has acquired Business Only Broadband, a Chicago-area fixed wireless enterprise services provider. This is the first major acquisition deal for the company since its purchase of PAETEC (News - Alert) back in 2011.

According to Windstream, Business Only Broadband offers high-bandwidth, enterprise-class Ethernet and networking solutions marketed specifically to businesses. The company currently has operations in Chicago, New York City, northern New Jersey and Milwaukee.

Windstream’s previous acquisition deals indicate the company is continuing to focus on expanding its market share and extending its service capabilities. Industry insiders suggest that it is likely Windstream is positioning itself to capitalize on the grown in broadband wireless service. BroadPoint Topic forecasts that there will be 940 million global broadband subscribers by the end of 2018.

"The acquisition of Business Only Broadband further differentiates Windstream as an innovative enterprise services provider," said Jeff Gardner, Windstream president and CEO. "The ability to offer our business customers the diversity and reliability of a fixed wireless service offering, in addition to our already deep portfolio of fiber and cloud-based services, reinforces our commitment to offering smart solutions and personalized service."

Windstream plans to expand the Business Only Broadband fixed wireless broadband network into additional markets beginning in 2015 to help businesses meet their broadband needs, according to a company news release. Fixed wireless broadband is a method of delivering high speed data utilizing a wireless connection between two fixed points. IP traffic is transported over the wireless network using high-capacity microwave technology, requiring no phone company or cable hardware.

Windstream currently offers cloud computing and managed services to businesses nationwide, and it also offers broadband, phone and digital TV services to consumers primarily in rural areas. In additional to expanding its business services, the acquisition also will open the company’s potential reach in new and more urban regional markets.

Financial terms of the transaction were not disclosed. Windstream has more than $6 billion in annual revenues and is listed on the S&P 500 index.