View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
  2. Data Centre
November 4, 2016

Centurylink funds Level 3 buyout with 57 data centres sell off

It's just about break even in cash terms for the telco which bought into data centres in 2011

By Sam

US telecoms giant Centuryink entered a definitive agreement to sell 57 data centres and its colocation business to a consortium including Medina Capital Advisors and Longview Asset Management for just over $2bn in cash and a minority stake in the sold off division.

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

In top line cash terms Centurylink is just about breaking even on a deal it struck in 2011 when it bought a colo firm known as Savvis for $2.5bn.

The telco said it would focus on IT services and solutions, including network, managed hosting and cloud and though it will no longer own the data centers it 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.

Justin Bateman, a managing partner at BC Partners, said “We are excited to be acquiring CenturyLink’s portfolio of data center assets. CenturyLink has built and maintained an impressive global footprint of colocation data centers that is unparalleled for a portfolio of assets of this size. Led by Manny Medina and his management team at Medina Capital, these data centers will become part of a new, global secure infrastructure platform.”

https://www.cbronline.com/news/verticals/finance/centurylink-buys-level-3-25bn/

 

Content from our partners
Green for go: Transforming trade in the UK
Manufacturers are switching to personalised customer experience amid fierce competition
How many ends in end-to-end service orchestration?

Under terms of the agreement, the BC Partners/Medina-led consortium will assume ownership of CenturyLink’s portfolio of 57 data centers. 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.

Glen F. Post III, chief executive officer 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.”

 

 

 

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU