CenturyLink Finalizes Sale of Data Centers, Colo Business to Consortium
**Editor’s Note: Please click here for a recap of the biggest channel-impacting mergers in February and March.**
CenturyLink has completed the sale of its data centers and colocation business to BC Partners, in a consortium that includes Medina Capital Advisors and Longview Asset Management.
CenturyLink received about $1.86 billion in pre-tax net cash proceeds and a 10 percent equity stake in the consortium’s newly formed global secure infrastructure company named Cyxtera Technologies. CenturyLink plans to use the money to partially fund its acquisition of Level 3 Communications.
“This sale allows CenturyLink to drive greater focus on our network infrastructure while still having the ability to sell colocation services in these data centers,” said Glen Post III, CenturyLink’s president and CEO. “CenturyLink provides reliable and secure network solutions that are critical to the success of businesses which increasingly rely on digital connections to help ensure the growth and success of their operations. Additionally, our hosting and cloud services, combined with our robust IT services and solutions, offer customers an impressive suite of complementary services.”{ad}
Cyxtera assumes ownership of CenturyLink’s portfolio of 57 data centers, which includes about 195 megawatts of power across 2.6 million square feet of raised floor capacity. About 700 CenturyLink employees will transition to Cyxtera.
CenturyLink plans to continue to offer colocation services as part of its hybrid IT offerings through its commercial relationships with Cyxtera.
