Lumen Technologies has entered into a definitive agreement to sell its incumbent local exchange carrier (ILEC) business in 20 states to funds managed by affiliates of Apollo Global Management for USD7.5 billion, including the assumption of approximately USD1.4 billion of debt. The price is subject to working capital and various other purchase price adjustments, and the transaction is expected to close in the second half of 2022, subject to customary closing conditions including required regulatory approvals.
The ILEC business – which is currently operated under the company’s legacy CenturyLink brand – primarily serves consumer and small businesses in 20 Midwest and South-east states. Under the terms of the transaction, Lumen will retain its ILEC assets in a further 16 states, as well as its national fibre routes and competitive local exchange carrier (CLEC) networks.
TeleGeography notes that the deal represents Lumen’s second major sale in recent weeks; on 25 July the telco agreed to sell its Latin American business to Stonepeak for USD2.735 billion.