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Transaction strengthens Lumen’s financial position and sharpens strategic focus
Denver When London, November 2, 2022 /PR Newswire/ — Lumen Technologies (NYSE: LUMN) and Colt Technology Services (Colt), a digital infrastructure company, today announced that it has entered into an exclusive agreement for the proposed sale of Lumen’s. Europe, middle east When Africa (EMEA) Business to Colt $1.8 billionThis is a very attractive multiple (~11x) for Lumen’s EMEA business and adds value to shareholders. For more information on this transaction, please refer to Lumen’s 8-K filed alongside this release.
Lumen reaches agreement to sell EMEA business to Colt Technology Services for $1.8 billion
The envisioned transaction, which is subject to customary terms and conditions, involves the sale by Lumen of its EMEA business, including terrestrial and undersea networks, data centers and network equipment in the EMEA region, LondonHeadquartered in Colt. Upon completion of the transaction, Lumen will further strengthen Lumen’s strategic focus of investing in core businesses expected to drive long-term, profitable growth.
Benefits to Lumens:
- The purchase price represents approximately 11 times the 2021 estimated Adjusted EBITDA of the EMEA business.
- The additional capital and streamlined portfolio will facilitate more focused investment in the company’s growth and help maintain Lumen’s strong balance sheet.
- The terms of the deal will allow Lumen to continue serving multinational customers through its strategic partnership with Colt.
Lumen’s President and CEO said: Jeff Story“This transaction strengthens our focus and allows us to more efficiently invest in our most strategic opportunities, major enterprise and quantum fiber initiatives, and partner with regional leaders like Colt. Europe and Sirion latin america To continue to serve our multinational customers. ”
“This transaction marks the next chapter in Colt’s exciting story of global growth and world-class innovation.” Kelly Gilder, CEO, Colt Technology Services. “We are deeply committed to building extraordinary connections for our employees, customers and partners across our digital infrastructure. It will help us strengthen and expand, accelerate our growth, and bring the power of the digital universe closer to our customers.”
Known for its commitment to customer experience and industry-leading environmental, social and governance (ESG) performance, Colt is a global digital infrastructure business with over 60 offices worldwide. The transaction expands Colt’s infrastructure into new geographic markets and enhances the services and capabilities offered to global enterprises and strategic partners.
Benefits for Colt:
- Expands Colt’s network to additional countries, European cities and data centers to serve businesses everywhere Europe Enhanced fiber network connectivity.
- Colt provides access to a wide range of product solutions for a diverse range of customers including Enterprise, Hyperscalers, Government and Wholesale.
- Colt will be able to serve the growing enterprise and international IP traffic in EMEA via extensive land and subsea reach.
strategic partnership
Most of Lumen’s EMEA employees will join Colt following the closing of the transaction. Colt and Lumen will establish a strategic relationship that will allow Lumen to continue to provide a seamless experience to his multinational customers with their EMEA needs. This partnership will enable Colt to continue serving the needs of EMEA-based customers who require his non-EMEA services.
“Lumen has a strong interest in Colt’s success and looks forward to continuing to be a close business partner and valued customer,” said Storey. “Colt’s reputation and customer focus make it an ideal partner to meet the needs of our customers. North America.”
“Colt and Lumen share values and aim to deliver a superior customer experience,” says Gilder. “This combination is underpinned by amazing people and incredible infrastructure, inspired by the power of technology to transform the way we live and work.”
Lumen and Colt expect the transaction to close as early as the second half of 2023, subject to all regulatory approvals in the United States and certain countries in which Colt does business, and other customary conditions. I’m here.
Purchase contracts contain various customary clauses for such transactions, including various indemnifications and purchase price adjustments.
Morgan Stanley & Co. LLC is acting as financial advisor to Lumen in connection with this transaction, and Bryan Cave Leighton Paisner LLP is acting as legal advisor to Lumen. Evercore Group LLC is acting as financial advisor to Colt in connection with the transaction and Baker & McKenzie LLP is acting as legal advisor to Colt.
About Lumen
Lumen is guided by our belief that humanity is at its best when technology advances the way we live and work. With nearly 400,000 route fiber miles and serving customers in over 60 countries, we provide the fastest, most secure platform for applications and data, enabling businesses, governments and communities to deliver great experiences. We support you to do so.
For more information on our purpose to advance human progress through our Lumen network, edge cloud, security, communications and collaboration solutions, and technology, please visit news.lumen.com/home, LinkedIn: /lumentechnologies, Twitter: @lumentechco, Facebook: / Find out more on lumentechnologies, Instagram. : @lumentechnologies and YouTube: /lumentechnologies. Lumen and Lumen Technologies are US registered trademarks. usa.
About Colt
Colt Technology Services (Colt) is a global digital infrastructure company that creates extraordinary connections to help businesses succeed. Backed by like-minded partners and amazing people, Colt aims to put the power of the digital universe in your hands anytime, anywhere.
Since 1992, Colt has set itself apart through a deep commitment to our customers, city of london In over 60 offices worldwide. The powerful Colt IQ Network connects his 1000+ data centers, 51 metropolitan area networks and 31,000+ buildings in 222 cities and 32 countries. Europe, Asia When North American Largest business hub. A privately held company, Colt is one of the most financially sound companies in the space.
Colt is dedicated to providing an industry-leading customer experience, guided by our dedication to customer innovation, our values and commitment to our customers, partners, people and planet.
For more information, see: www.colt.net
Forward-Looking Statements Except for the historical and factual information contained herein, the matters set forth in this press release include statements regarding expected transaction revenues, timing and benefits of the proposed transaction, and “estimated”, “expected” , “project,” “plan,” “intent,” “will,” and similar expressions are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, many of which are beyond our control. If one or more of these risks or uncertainties materialize or the underlying assumptions prove incorrect, actual events and results may differ materially from those anticipated, estimated or projected. may differ. Factors that may affect actual results include, but are not limited to: the possibility that the expected benefits from the proposed transaction will not be realized in the manner intended; In connection with the sale, the Company may find it more difficult than anticipated to separate his EMEA business from other businesses. The possibility that the post-closing commercial relationship between the parties will not operate in the manner currently envisioned. We may be required to pay higher than expected tax payments, make unexpected payments under commercial agreements or otherwise receive less net cash proceeds than expected. The potential for the company’s customers, vendors, or employees to react adversely to the sale. changes in our cash requirements, financial condition or business, operations or financial plans; The impact of competition from a wide variety of competing providers. Purchaser’s ability to successfully maintain the quality of its product and service offerings and to introduce new offerings on a timely and cost-effective basis. Other risk factors and considerations detailed from time to time in our reports filed with the U.S. Securities and Exchange Commission. There can be no assurance that our proposed sale of the EMEA business will actually be completed in the manner described or that it will be completed at all. Please note that new factors may emerge from time to time. It is impossible to identify all such factors, nor predict the effect of each factor on a proposed transaction. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as legally required, we undertake no obligation and expressly disclaim any obligation to publicly update any forward-looking statements as a result of new information, future events or otherwise. In addition, information contained in forward-looking statements about our intentions reflects our intentions as of the date of such forward-looking statements, including, among other things, regulatory, technological, industry, competitive, economic and based on the market. Conditions at the time and related assumptions. We may change our intentions, strategies or plans at any time and for any reason without notice.
Source Lumen Technologies
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