Lumen Technologies, a global provider of network and cloud services, has announced the completion of the sale of its Europe, Middle East and Africa (EMEA) business to Colt Technology Services, a digital infrastructure company, for $1.8 billion in cash. The deal, which was first announced in November 2022, represents an attractive valuation for Lumen’s EMEA business and simplifies its operations while enhancing its strategic partnership with Colt.
Lumen Focuses on Its Core Markets and Customers
Lumen’s decision to divest its EMEA business is part of its strategy to focus on its core markets and customers in North America, where it operates one of the largest and most deeply peered networks in the world. Lumen will continue to serve its multinational customers in EMEA through its strong relationship with Colt, which will provide seamless networking solutions across the region.
Lumen CEO Kate Johnson said: “We’re excited about what this transaction does for our customers and for Lumen. Our focus on building deep relationships with strategic partners allows us to simplify our business while delivering a seamless networking experience for our multinational customers. Through our strong relationship with Colt, both companies are well positioned for future growth.”
The transaction also strengthens Lumen’s financial position, as it generates $1.8 billion in cash that can be used to reduce debt, invest in growth initiatives, or return capital to shareholders. The sale price represents an attractive multiple of about 11 times the estimated 2021 adjusted EBITDA of Lumen’s EMEA business.
Colt Expands Its Presence and Capabilities in EMEA
Colt, which is headquartered in London and operates in 32 countries across Europe, Asia and North America, sees the acquisition of Lumen’s EMEA business as a strategic opportunity to expand its presence and capabilities in the region. Colt will acquire Lumen’s fiber network, data centers, cloud and security services, as well as its customer base and employees in EMEA.
Colt CEO Keri Gilder said: “This is a landmark moment for Colt. The acquisition of Lumen’s EMEA business will significantly enhance our scale and reach, as well as our ability to deliver world-class digital infrastructure services to our customers. We are delighted to welcome Lumen’s talented employees and loyal customers to the Colt family, and we look forward to working together to create an even stronger company.”
Colt will also benefit from Lumen’s strategic partnership with Lumen in North America, where it will leverage Lumen’s network and services to support its customers’ needs across the continent. Colt and Lumen have already established a close collaboration on several projects, such as the delivery of low-latency connectivity solutions for the financial services industry.
Customers Can Expect a Smooth Transition and Continuity of Service
Both Lumen and Colt have assured their customers that they can expect a smooth transition and continuity of service as they complete the integration of their businesses in EMEA. A small team of Lumen employees will remain in the region to support the operations and ensure a seamless handover.
Lumen and Colt have also committed to maintaining the highest standards of quality, security and reliability for their customers’ network and cloud needs. Both companies have extensive experience and expertise in delivering digital infrastructure solutions for various industries, such as healthcare, education, government, media and entertainment.
Lumen and Colt have also expressed their gratitude to their employees, customers and partners for their support and trust throughout the transaction process. They have stated that they are excited about the future opportunities that this deal will create for all stakeholders.
