CenturyLink to Sell Data Centers for $2.3 Billion
November 04 2016 - 9:50AM
Dow Jones News
By Joshua Jamerson
CenturyLink Inc. said it plans to sell its data centers and
colocation business to a consortium led by BC Partners for $2.3
billion, which it will use in part to fund its planned tie-up with
Level 3 Communications Inc.
Under the terms of the agreement announced Friday, CenturyLink
has agreed to sell the data centers and colocation business for
$2.15 billion in cash. It will also receive a $150 million minority
stake in the consortium's new global secure infrastructure
company.
Shares rose 2.2% to $23.50 in premarket trading.
CenturyLink last week reached a $25 billion cash-and-stock deal
to buy Level 3. The deal would turn CenturyLink -- which has grown
from a small Louisiana phone provider by scooping up the former
Qwest and Sprint Corp.'s landlines -- into an even more
corporate-focused service provider. The combined company would also
keep millions of home internet subscribers, most of whom use slower
digital subscriber lines.
The consortium buying the data centers includes Medina Capital
Advisors and Longview Asset Management.
Under terms of the agreement, the BC Partners and Medina-led
consortium will assume ownership of CenturyLink's portfolio of 57
data centers, which includes about 195 megawatts of power.
The transaction, subject to regulatory approval and closing
conditions, is subject to close first quarter of 2017.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
November 04, 2016 09:35 ET (13:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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