CenturyLink has entered into a definitive agreement to sell its data centers and colocation business to funds advised by BC Partners, in a consortium including Medina Capital Advisors and Longview Asset Management. In exchange, CenturyLink will receive $2.15 billion in cash and a minority stake to be valued at $150 million in the consortium’s newly-formed global secure infrastructure company.
Under terms of the agreement, the BC Partners/Medina-led consortium will assume ownership of CenturyLink‘s portfolio of 57 data centers at closing. The data center portfolio includes approximately 195 megawatts of power across 2.6 million square feet of raised floor capacity.
CenturyLink will continue to focus on offering customers a wide range of IT services and solutions, including network, managed hosting and cloud. Though it will no longer own the data centers, CenturyLink will continue to offer colocation services as part of its product portfolio through its commercial relationships to be entered into at closing with the BC Partners/Medina-led consortium.
“After conducting a thorough review process, we are pleased to have reached an agreement with BC Partners,” said Glen F. Post III, chief executive officer (CEO) and president of CenturyLink. “We believe this transaction will benefit customers, employees and investors. Both CenturyLink and BC Partners have a strong customer focus and are committed to ensuring a seamless transition of the customers and their colocation environments.”
CenturyLink plans to use the net proceeds from this sale to partly fund its acquisition of Level 3 Communications announced on October 31, 2016.