Telecom company Lumen Technologies is selling its Latin American network services to private equity firm Stonepeak Partners for $2.7 billion.
Lumen’s Latin American business will then operate as an independent, U.S.-headquartered portfolio company of Stonepeak, the two companies said in a statement about the deal.
The current Latin American leadership team and organization will remain in place, led by Hector Alonso, Lumen's president for the region. Lumen will also retain a strategic relationship with the New LATAM Company and continue to serve joint customers in the region.
The sale is expected to close in the first half of 2022.
“This transaction unlocks value for our shareholders while allowing us to maintain our global presence through our strategic relationship with the New LATAM Company,” Lumen’s President and CEO Jeff Storey said. “This transaction allows Lumen to focus investments in key areas of the business to drive future growth while providing flexibility for our capital allocation strategy.”
Lumen will continue to serve customers in North America and the EMEA (Europe, Middle East, and Africa), and APAC (Asia Pacific) regions with needs in Latin America through its strategic partnership with the New LATAM Company. This relationship includes reciprocal reselling and network arrangements that leverage each other's extensive fiber footprints, data centers, and other network assets.
Upon the completion of the transaction, customers who seek services within the Latin America region will work directly with the New LATAM Company or through the strategic Lumen partnership.