Lumen Technologies has agreed to sell a collection of telephone and broadband infrastructure that covers six million residential and business customers across 20 states, mostly in the U.S. Midwest and Southeast, to Apollo Global Management. The $7.5 billion deal value includes $1.4 billion of assumed debt.
What some will find interesting is that the assets seem to represent much of the original CenturyLink assets, which was a rural telco at the time.
CenturyLink purchased (some would say the firms merged) the Qwest assets in 2011. That deal was valued at $12.2 billion.
At the time, the firms had combined revenue of $18.6 billion. CenturyLink later also purchased Level 3 Communications and Savvis.
So the new deal essentially breaks out the former CenturyTel assets, leaving Lumen Technolgoies with the Qwest, Level 3 and Savvis assets. The new Lumen will derive even more of its total revenue from business services and customers.
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