Lumen sells off EMEA assets

News and Business

Lumen Technologies has agreed to sell its EMEA assets to UK-based digital infrastructure company Colt Technology Services for US$1.8 billion. The assets include Lumen’s terrestrial and subsea networks, data centres and network equipment in the region The proposed deal follows the sale of a significant part of Lumen’s ILEC assets to Brightspeed in October 2022.

Lumen says the reasons for the sale include streamlining the company’s portfolio, providing a better return for shareholders and driving more focused investments on enterprise growth. Lumen will maintain a strategic relationship with Colt however. Its EMEA employees will join Colt after the transaction closes and Lumen will to continue to serve its multinational customers with needs in EMEA. The partnership will also allow Colt to continue serving the needs of the EMEA-based customers with service needs outside of EMEA.

“We are continuing to execute on portfolio optimisation at Lumen, creating additional value for our shareholders by monetising non-strategic assets at accretive multiples,” said Lumen president and CEO Jeff Storey. “This transaction would enhance our focus so we can invest more efficiently in our most strategic opportunities – our key Enterprise and Quantum Fibre initiatives – and partner with regional leaders like Colt in Europe and Cirion in Latin America to continue serving our multinational enterprise customers.”

He added, “Lumen has a strong interest in Colt’s success, and we expect to remain a close business partner and key customer. Colt’s strong reputation and customer focus make them the ideal partner to serve the needs of our customers, and we expect to remain Colt’s partner of choice for their customers’ needs in North America.”

“This transaction would mark the next chapter in Colt’s exciting story of global growth and world-class innovation,” said Keri Gilder, CEO, Colt Technology Services. “We’re deeply committed to building extraordinary connections for our people, customers and partners across our digital infrastructure. This acquisition would strengthen and extend these connections across existing and new geographies, helping us to accelerate growth and bring the power of the digital universe closer to our customers.”

The companies envisage the transaction will close late 2023 once regulatory approvals in the U.S. and certain countries where Colt operates have been received, as well as the usual customary conditions.

For more information, visit www.lumen.com