Lumen Technologies (formerly CenturyLink) has inked a definitive agreement to sell its Latin American business to New York-based alternative investment firm Stonepeak, in a deal worth USD2.735 billion. AustralianSuper, Australia’s largest pension fund, will act as a co-investor, alongside Stonepeak.
Under the terms of the purchase agreement, Lumen will divest its Latin American business, which will operate as an independent, US-headquartered portfolio company of Stonepeak. The assets in question were acquired by CenturyLink in 2017, as part of its buyout of Level 3. At that time the company presided over a 26,000km LatAm network footprint that spanned the likes of Argentina, Brazil, Colombia, Ecuador, Mexico, Panama and Peru.
The current Latin American leadership team and organisation will remain in place, led by Hector Alonso, Lumen’s president for the region, and a veteran of the Level 3 era. Post-transaction, Lumen will retain a strategic relationship with the new company and continue to serve joint customers in the region. This relationship will include reciprocal reselling and network arrangements that leverage each company’s extensive fibre footprints, data centres and other network assets.
Lumen and Stonepeak expect the transaction to close in the first half of 2022, upon receipt of all regulatory approvals in the US and certain other countries, as well as the satisfaction of other customary conditions.