CenturyLink To Sell Its Data Centers And Colocation Business

(RTTNews) - CenturyLink, Inc. (CTL) announced that it agreed 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.

CenturyLink plans to use the net proceeds from this sale to partly fund its acquisition of Level 3 Communications announced on October 31, 2016.

As per 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.

The parties anticipate closing the transaction in the first quarter of 2017. The transaction is subject to regulatory approvals.