CenturyLink to sell off datacenters, colocation business
Just a few days after announcing its acquisition of Level 3, CenturyLink on Friday announced it's selling off its portfolio of 57 datacenters and colocation business to a group of funds.
The consortium, which includes BC Partners, Medina Capital Advisors, and Longview Asset Management, will pay CenturyLink $2.15 billion in cash and a minority stake to be valued at $150 million in the consortium's newly formed global secure infrastructure company. The deal is expected to close in the first quarter of 2017 and will help fund CenturyLink's purchase of Level 3.
CenturyLink CEO Glen F. Post III said in a statement that 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".
CenturyLink will continue to offer colocation services through the agreements it plans to form with the BC Partners/Medina-led consortium. The company has been interested in selling its datacenters for some time due to the cost of running them.
Verizon also recently said that the sale of its datacenter assets is imminent.