Lumen Enters into Settlement Relating to Divestiture of EMEA Enterprise to Colt Know-how Providers for $1.8B

Transaction will strengthen Lumen’s monetary place and sharpen strategic focus

DENVER and LONDON, Nov. 2, 2022 /PRNewswire/ — Lumen Applied sciences (NYSE: LUMN) and Colt Know-how Providers (Colt), a digital infrastructure firm, announce right this moment they’ve entered into an unique association for the proposed sale of Lumen’s Europe, Center East and Africa (EMEA) enterprise to Colt for $1.8 billion. This represents a really engaging a number of (~11x) for Lumen’s EMEA enterprise and can create extra worth for its shareholders. Extra info on this transaction will be present in Lumen’s 8-Okay to be contemporaneously filed with this launch.

The envisaged transaction is topic to customary situations and would contain the divestiture by Lumen of its EMEA enterprise, together with its terrestrial and subsea networks, knowledge facilities and community gear within the area to London-headquartered Colt. Upon completion, the transaction will additional Lumen’s strategic deal with investing in core companies which are anticipated to drive long-term, worthwhile progress.

Advantages to Lumen:

• Buy worth represents a powerful ~11x a number of of the EMEA enterprise’s estimated 2021 adjusted EBITDA.
• Further capital and a streamlined portfolio will drive extra centered investments on enterprise progress and assist preserve Lumen’s sturdy stability sheet.
• The phrases of the transaction allow Lumen to proceed to serve multinational enterprise clients via its strategic partnership with Colt.

“We’re persevering with to execute on portfolio optimization at Lumen, creating extra worth for our shareholders by monetizing non-strategic property at accretive multiples,” mentioned Lumen President and CEO Jeff Storey. “This transaction would improve our focus so we are able to make investments extra effectively in our most strategic alternatives – our key Enterprise and Quantum Fiber initiatives – and associate with regional leaders like Colt in Europe and Cirion in Latin America to proceed serving our multinational enterprise clients.”

“This transaction would mark the subsequent chapter in Colt’s thrilling story of world progress and world-class innovation,” mentioned Keri Gilder, CEO, Colt Know-how Providers. “We’re deeply dedicated to constructing extraordinary connections for our folks, clients and companions throughout our digital infrastructure. This acquisition would strengthen and prolong these connections throughout current and new geographies, serving to us to speed up progress and produce the facility of the digital universe nearer to our clients.”

Recognized for its dedication to buyer expertise and its industry-leading environmental, social and governance (ESG) efficiency, Colt is a worldwide digital infrastructure enterprise with over 60 places of work world wide. The transaction will prolong Colt’s infrastructure to new geographic markets, boosting the companies and capabilities it delivers to world enterprises and strategic companions.  

Advantages to Colt:

• Extends Colt’s community into extra international locations, European cities and knowledge facilities, providing companies all through Europe expanded fiber community connectivity.
• Provides Colt entry to a full vary of product options for diversified Enterprise, Hyperscaler, Authorities and Wholesale clients.
• Positions Colt to satisfy rising enterprise and worldwide IP visitors in EMEA by way of in depth terrestrial and subsea attain.

Strategic partnership

Most of Lumen’s EMEA staff would be part of Colt after the transaction closes. Colt and Lumen will set up a strategic relationship that can allow Lumen to proceed delivering a seamless expertise for its multinational clients with wants in EMEA. The partnership will even enable Colt to proceed serving the wants of the EMEA-based clients with service wants exterior of EMEA.

“Lumen has a powerful curiosity in Colt’s success, and we count on to stay an in depth enterprise associate and key buyer,” mentioned Storey. “Colt’s sturdy status and buyer focus make them the perfect associate to serve the wants of our clients, and we count on to stay Colt’s associate of alternative for his or her clients’ wants in North America.”

“Colt and Lumen share values, and a drive to ship excellent buyer expertise,” mentioned Gilder. “This mixture is powered by wonderful folks and unbelievable infrastructure and is impressed by expertise’s skill to vary the best way we reside and work.”

Lumen and Colt envisage the transaction would shut as early as late 2023 upon receipt of all regulatory approvals within the U.S. and sure international locations the place Colt operates, in addition to the satisfaction of different customary situations.

The acquisition settlement incorporates varied customary covenants for transactions of this kind, together with varied indemnities and buy worth changes.

Morgan Stanley & Co. LLC is performing as monetary advisor to Lumen in reference to the transaction, and Bryan Cave Leighton Paisner LLP is serving as authorized advisor to Lumen. Evercore Group L.L.C. is performing as monetary advisor to Colt in reference to the transaction and Baker & McKenzie LLP is serving as authorized advisor to Colt.

About Lumen
Lumen is guided by our perception that humanity is at its finest when expertise advances the best way we reside and work. With roughly 400,000 route fiber miles and serving clients in additional than 60 international locations, we ship the quickest, most safe platform for purposes and knowledge to assist companies, authorities and communities ship wonderful experiences.

Study extra concerning the Lumen community, edge cloud, safety, communication and collaboration options and our goal to additional human progress via expertise at information.lumen.com/residence, LinkedIn: /lumentechnologies, Twitter: @lumentechco, Fb: /lumentechnologies, Instagram: @lumentechnologies and YouTube: /lumentechnologies. Lumen and Lumen Applied sciences are registered logos in the USA.

About Colt

Colt Know-how Providers (Colt) is a worldwide digital infrastructure firm which creates extraordinary connections to assist companies succeed. Powered by like-minded companions and wonderful folks, Colt is pushed by its goal: to put the facility of the digital universe within the palms of its clients, wherever, nevertheless and at any time when they select.  

Since 1992, Colt has set itself aside via its deep dedication to its clients, rising from its heritage within the Metropolis of London to greater than 60 places of work world wide. The highly effective Colt IQ Community connects 222 cities and 32 international locations with greater than 1000 knowledge centres, 51 Metropolitan Space Networks and over 31,000 buildings throughout Europe, Asia and North America’s largest enterprise hubs. Privately owned, Colt is among the most financially sound firms within the sector. 

Obsessive about delivering industry-leading buyer expertise, Colt is guided by its dedication to buyer innovation, by its values and its duty to its clients, companions, folks and planet.  

For extra info, please go to www.colt.internet 

Ahead-looking Statements Apart from the historic and factual info contained herein, the issues set forth on this press launch, together with statements concerning the anticipated transaction proceeds, timing and advantages of the proposed transactions, and different statements recognized by phrases similar to “estimates,” “expects,” “tasks,” “plans,” “intends,” “will” and comparable expressions, are forward-looking statements throughout the which means of the “protected harbor” provisions of the Non-public Securities Litigation Reform Act of 1995. These forward-looking statements are topic to plenty of dangers, uncertainties and assumptions, lots of that are past our management. Precise occasions and outcomes might differ materially from these anticipated, estimated or projected if a number of of those dangers or uncertainties materialize, or if underlying assumptions show incorrect. Components that would have an effect on precise outcomes embody however usually are not restricted to: the power of the events to well timed and efficiently obtain the required approvals of regulatory companies; the chance that the anticipated advantages from the proposed transaction can’t be realized within the method contemplated; the chance that it might be tougher than anticipated to segregate the Firm’s EMEA enterprise from its different companies in reference to the Divestiture; the chance that the post-closing business relationships between the events is not going to function within the method presently contemplated; the chance that the Firm is likely to be required to pay increased than anticipated tax funds, to make unanticipated funds below the transaction agreements or to in any other case obtain much less internet money proceeds than anticipated; the chance that the Firm’s clients, distributors or staff might react unfavorably to the Divestiture; modifications within the Firm’s money necessities, monetary place or enterprise, operational or monetary plans; the consequences of competitors from all kinds of aggressive suppliers; the purchaser’s skill to efficiently preserve the standard of its product and repair choices and to introduce new choices on a well timed and cost-effective foundation; and different danger components and cautionary statements as detailed now and again within the Firm’s studies filed with the U.S. Securities and Alternate Fee. There will be no assurance that the Firm’s proposed Divestiture of its EMEA enterprise will in actual fact be consummated within the method described or in any respect. Try to be conscious that new components might emerge now and again, and it’s not doable for us to establish all such components, nor can we predict the impression of every such issue on the proposed transaction. You shouldn’t place undue reliance on these forward-looking statements, which converse solely as of the date of this press launch. Except legally required, the Firm undertakes no obligation and expressly disclaims any such obligation to replace publicly any forward-looking statements, whether or not because of new info, future occasions or in any other case. Moreover, any details about our intentions contained in any of our forward-looking statements displays our intentions as of the date of such forward-looking assertion, and is predicated upon, amongst different issues, regulatory, technological, {industry}, aggressive, financial and market situations, and our associated assumptions, as of such date. We might change our intentions, methods or plans with out discover at any time and for any cause.

SOURCE Lumen Applied sciences