AT&T to Sell Data Centers Operations to Brookfield Infrastructure for $1.1 Billion

   By Aisha Al-Muslim

AT&T Communications, a business unit of AT&T Inc. (T), said it will sell 31 data centers--places where companies can rent space to run their servers--to Brookfield Infrastructure Partners LP under a deal worth $1.1 billion.

Brookfield is establishing a wholly owned company to own and operate the data centers and intends to appoint Tim Caulfield as chief executive of the business, AT&T announced Thursday. AT&T said will use the money from the deal to pay down debt.

Mr. Caulfield is currently CEO of Antara Group, an information-technology management consultancy with experience in data-center services. Mr. Caulfield's leadership team includes veterans of AT&T and other communications and technology companies.

Under Brookfield's ownership, AT&T will continue to deliver network services to its customers in 18 internet data centers in the U.S. and 13 outside the U.S. The co-location data-center operations serve more than 1,000 companies across the technology, financial, industrial, media retail and other sectors world-wide.

After the close of the transaction, customer contracts, employees supporting the colocation operations, fixed assets, leased and owned facilities will transfer to Brookfield. The transaction is expected to close within six to eight months.

As part of the strategic alliance with Brookfield, AT&T will become an active sales channel for the business and will be the anchor tenant of the co-location operations, it said.

Brookfield is an owner and operator of infrastructure assets globally, with more than $75 billion in assets under management across the communications infrastructure, utilities, transport, energy, renewable power, and sustainable-resources sectors.

Write to Aisha Al-Muslim at aisha.al-muslim@wsj.com

(END) Dow Jones Newswires

June 21, 2018 08:20 ET (12:20 GMT)

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