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Lumen Technologies to Sell U.S. Telecom Assets to Apollo for $7.5 Billion

Lumen Technologies Inc. plans to sell a swath of its U.S. telecommunications network to Apollo Global Management Inc. for $7.5 billion including debt, officials from the companies said.

The investment giant will carve out some of Lumen’s so-called incumbent local exchange carrier assets, a collection of telephone and broadband infrastructure that covers 6 million residential and business customers across 20 states, mostly in the U.S. Midwest and Southeast. The deal value includes $1.4 billion of assumed debt.

Lumen’s remaining operations will focus on large business clients, who generate most of its revenue, as well as home-broadband subscribers in 16 states including Colorado, Florida and Washington.

The new Apollo-backed company, which aims to accelerate the business’s shift from older copper lines to high-speed fiber-optic technology, will be led by Verizon Communications Inc. veterans Bob Mudge, Chris Creager and Tom Maguire, who together built out Verizon’s fiber-based, Fios service.

Lumen Chief Executive Jeff Storey said the company is shifting its focus to consumer markets it considers good upgrade candidates for its own fiber business.

Lumen Technologies to Sell U.S. Telecom Assets to Apollo for $7.5 Billion Source link Lumen Technologies to Sell U.S. Telecom Assets to Apollo for $7.5 Billion

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