Lumen Enters into Agreement Regarding Divestiture of EMEA Business to Colt Technology Services for $1.8B
Transaction will strengthen Lumen's financial position and sharpen strategic focus
DENVER and LONDON, Nov. 2, 2022 /PRNewswire/ -- Lumen Technologies (NYSE: LUMN) and Colt Technology Services (Colt), a digital infrastructure company, announce today they have entered into an exclusive arrangement for the proposed sale of Lumen's Europe, Middle East and Africa (EMEA) business to Colt for $1.8 billion. This represents a very attractive multiple (~11x) for Lumen's EMEA business and will create additional value for its shareholders. More information on this transaction can be found in Lumen's 8-K to be contemporaneously filed with this release.
The envisaged transaction is subject to customary conditions and would involve the divestiture by Lumen of its EMEA business, including its terrestrial and subsea networks, data centers and network equipment in the region to London-headquartered Colt. Upon completion, the transaction will further Lumen's strategic focus on investing in core businesses that are expected to drive long-term, profitable growth.
Benefits to Lumen:
- Purchase price represents a strong ~11x multiple of the EMEA business's estimated 2021 adjusted EBITDA.
- Additional capital and a streamlined portfolio will drive more focused investments on enterprise growth and help maintain Lumen's strong balance sheet.
- The terms of the transaction enable Lumen to continue to serve multinational enterprise customers through its strategic partnership with Colt.
"We are continuing to execute on portfolio optimization at Lumen, creating additional value for our shareholders by monetizing non-strategic assets at accretive multiples," said Lumen President and CEO Jeff Storey. "This transaction would enhance our focus so we can invest more efficiently in our most strategic opportunities – our key Enterprise and Quantum Fiber initiatives – and partner with regional leaders like Colt in Europe and Cirion in Latin America to continue serving our multinational enterprise customers."
"This transaction would mark the next chapter in Colt's exciting story of global growth and world-class innovation," said Keri Gilder, CEO, Colt Technology Services. "We're deeply committed to building extraordinary connections for our people, customers and partners across our digital infrastructure. This acquisition would strengthen and extend these connections across existing and new geographies, helping us to accelerate growth and bring the power of the digital universe closer to our customers."