Lumen Technologies (NYSE: LUMN) yesterday announced it has entered into a definitive agreement to sell its ILEC (incumbent local exchange carrier) business, CenturyLink, including its consumer, small business, wholesale and mostly copper-served enterprise customers and assets, in 20 states. The sale is to funds managed by affiliates of Apollo Global Management, Inc. (NYSE: APO) for $7.5 billion, including debt assumption of approximately $1.4 billion, and subject to working capital and various other purchase price adjustments.
Under the terms of the transaction, Lumen will retain its CenturyLink ILEC assets in 16 states, as well as its national fiber routes and CLEC (competitive local exchange carrier) networks. For Apollo Funds, the transaction is intended to provide a robust, scaled local network, as well as the operations and back-office support to meet the accelerating demand for high-bandwidth connectivity and fiber technology.
Assets in the 20 states being acquired include:
- Broadband and voice for consumer, enterprise and wholesale customers
- Fiber and copper connectivity to enabled buildings
- Connectivity to tower sites
- Central offices
“This transaction is an important step in our continued efforts to transform Lumen and drive future growth for our company,” said Jeff Storey, Lumen president and CEO. “We are pleased with the attractive valuation we received for these assets, which highlights the overall value of Lumen’s extensive asset portfolio. Apollo Funds will receive a great business with a strong customer base, dedicated employees, and a platform for future growth.”
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