Transaction will strengthen Lumen’s financial position and strengthen strategic focus
Denver and London, November 2022 /PRNewswire/—— Lumen Technology (NYSE: LUMN) and Colt Technical Services Digital Infrastructure Corporation (Colt) announced today that they have entered into an exclusive arrangement for the proposed sale of Lumen’s Europe, middle East and Africa (EMEA) Business to Colt $1.8 billion. This is a very attractive multiple (~11x) for Lumen’s EMEA business and will create additional value for its shareholders. For more information on this deal, please see the Lumen 8-K filed concurrently with this release.
Lumen reaches deal to divest EMEA business to Colt Technology Services for $1.8B
The contemplated transaction, subject to customary conditions, would involve Lumen divesting its EMEA business, including its terrestrial and subsea networks, data centers and network equipment in the region, to London– Headquartered in Colt. Following the transaction, Lumens will further its strategic focus on investing in core businesses that are expected to drive long-term profitable growth.
Benefits to Lumens:
- The purchase price is 11 times estimated 2021 adjusted EBITDA for the EMEA business.
- The additional capital and a streamlined portfolio will drive investments more focused on corporate growth and help maintain Lumen’s strong balance sheet.
- The terms of the transaction enable Lumen to continue serving multinational corporate clients through its strategic partnership with Colt.
“We will continue to perform portfolio optimization at Lumen to create additional value for our shareholders by monetizing non-strategic assets at accretive multiples,” said Lumen President and CEO Jeff Storey“This transaction will enhance our focus so that we can more effectively invest in our most strategic opportunities – our key enterprise and quantum fiber programs – and work with regional leaders such as Colt Europe with Cirion in Latin America Continue to serve our multinational corporate clients. “
“This transaction will mark a new chapter in Colt’s exciting story of global growth and world-class innovation,” he said Kerry Gilder, Chief Executive Officer, Colt Technical Services. “We are deeply committed to building extraordinary connections across our digital infrastructure for our employees, customers and partners. This acquisition will strengthen and expand connections in these existing and new geographies, helping us accelerate growth and bring digital closer The power of the world 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 more than 60 offices around the world. The transaction will expand Colt’s infrastructure into new geographic markets, enhancing its services and capabilities for global businesses and strategic partners.
Benefits for Colt:
- Expand Colt’s network to other countries, European cities and data centers, serving businesses everywhere Europe Extend fiber optic network connections.
- Provides Colt with access to a full range of product solutions for diverse enterprise, hyperscale, government and wholesale customers.
- Enables Colt to meet growing enterprise and international IP traffic in the EMEA region with extensive land and subsea coverage.
strategic partnership
The majority of Lumen’s EMEA staff will join Colt after the transaction closes. Colt and Lumen will form a strategic relationship that will allow Lumen to continue to provide a seamless experience for its multinational customers in need in EMEA. The partnership will also enable Colt to continue to meet the needs of EMEA-based customers, as well as service needs outside of EMEA.
“Lumen has a keen interest in Colt’s success and we hope to continue to be a close business partner and key customer,” Storey said. “Colt’s strong reputation and customer focus make them an ideal partner to meet our customers’ needs and we hope to continue to be Colt’s partner of choice for meeting our customers’ needs North America. “
“Colt and Lumen share values and are committed to delivering an exceptional customer experience,” Gilder said. “This combination is powered by amazing talent and incredible infrastructure, and inspired by the ability of technology to transform the way we live and work.”
Lumen and Colt expect the transaction to close as early as the end of 2023, subject to all regulatory approvals in the U.S. and certain countries in which Colt operates, and other customary conditions.
The purchase agreement contains various customary covenants for such transactions, including various indemnities and purchase price adjustments.
Morgan Stanley LLC is serving as Lumen’s financial advisor and Bryan Cave Leighton Paisner LLP is serving as Lumen’s legal advisor in this transaction. Evercore Group LLC acted as financial advisor to Colt and Baker & McKenzie LLP acted as legal advisor to Colt in the transaction.
About Lumens
Lumen is guided by our belief that humans are at their best when technology improves the way we live and work. With approximately 400,000 routed fiber miles, we serve customers in more than 60 countries, providing the fastest, most secure platform for applications and data, helping businesses, governments and communities deliver amazing experiences.
Visit news.lumen.com/home, LinkedIn: /lumentechnologies, Twitter: @lumentechnologies, Facebook: /lumentechnologies, Instagram to learn more about the Lumen network, edge cloud, security, communication and collaboration solutions and how we advance humanity through technology More info: @lumentechnologies and YouTube: /lumentechnologies. Lumen and Lumen Technologies are U.S..
About Colt
Colt Technology Services (Colt) is a global digital infrastructure company dedicated to creating extraordinary connections to help businesses succeed. Backed by like-minded partners and talented people, Colt’s goal is to put the power of the digital world in the hands of customers, wherever and whenever.
Through its unwavering commitment to customers since 1992, Colt has City of London More than 60 offices around the world.Robust Colt IQ network connects 222 cities and 32 countries with more than 1,000 data centers, 51 metros, and 31,000 buildings Europe, Asia and North American largest commercial center. Colt is privately held and one of the most financially sound companies in the industry.
Colt is committed to delivering an industry-leading customer experience guided by a commitment to customer innovation, values, and responsibility to customers, partners, people and the planet.
For more information, please visit www.colt.net
forward-looking statements Except for the historical and factual information contained herein, matters set forth in this press release, including statements regarding expected transaction benefits, the timing and benefits of the proposed transaction, and “, “intends,” “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. Should one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, actual events and results could differ materially from those anticipated, estimated or projected. Factors that could affect actual results include, but are not limited to: the ability of the parties to successfully obtain required regulatory approvals in a timely manner; the possibility that the expected benefits of the proposed transaction will not materialize in the expected manner; Separation may be more difficult than expected; the commercial relationship between the parties after the transaction closes may not work as currently envisaged; the company may be required to pay higher-than-expected taxes, make unexpected payments under the transaction agreement or otherwise receive Lower-than-expected net cash proceeds; the possibility of the company’s customers, suppliers or employees reacting adversely to the divestiture; changes in the company’s cash needs, financial condition, or business, operations, or financial plans; the impact of competition from various competing suppliers the purchaser’s ability to successfully maintain the quality of its products and services and to introduce new products in a timely and cost-effective manner; and other risk factors and cautionary statements detailed from time to time in the company’s reports filed with the Securities and Exchange Commission. There can be no assurance that the company’s proposed divestiture of the EMEA business will actually be completed in the manner described, or at all. You should be aware that new factors may emerge from time to time, and it is impossible for us to identify all of these factors, nor can we predict the impact of each such factor on the 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 required by law, the company disclaims and expressly disclaims any such obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. In addition, any information regarding our intentions contained in any of our forward-looking statements reflects our intentions as of the date of such forward-looking statements and is based on regulatory, technological, industry, competitive, economic and market factors, among others. Conditions as of that date and our associated assumptions. We may change our intentions, strategies or plans at any time and for any reason without notice.
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Source Lumen Technology