Lumen divests CenturyLink ILEC assets

Lumen Technologies has announced that it is selling its current local exchange carrier (ILEC) business in 20 states for $7.5 billion. The firm will be selling the business to Apollo Funds. Lumen Technologies currently operates the ILEC business under the CenturyLink name, and the business includes its small business, consumer, wholesale, and copper-served enterprise customers and other assets.

The $7.5 billion fee also includes a debt assumption of up to $1.4 billion. Jeff Storey, CEO and president of Lumen, said the deal is an excellent step in the Company’s efforts to improve and push for the Company’s growth. He further added that the Company is content with the valuation of the assets in question received, reflecting Lumen’s diverse asset portfolio value. Jeff Storey finally said that apart from the great business Apollo Funds is receiving, it will also get a great customer base, enthusiastic workers, and a platform that allows future growth.

The deal will see Lumen keep its ILEC assets in 16 states. It will also retain its national fiber routes and competitive local exchange carrier networks. On the other hand, Apollo Funds will deliver a robust scaled local network, including the operations and back-office support, to meet the increased demand for fiber technology and high-bandwidth connectivity.