Lumen completes agreement to sell EMEA business to Colt Technology Services for US$1.8 billion

The transaction will strengthen Lumen’s financial position and sharpen its strategic focus

DENVER and LONDON, November 2, 2022 /PRNewswire/ — Lumen Technologies (NYSE:LUMN) and Colt Technology Services (Colt), a digital infrastructure company, today announced that it has entered into an exclusive agreement for the proposed sale of Lumen Europe, middle East and Africa (EMEA) Business to Colt for $1.8 billion. This represents a very attractive multiple (~11x) for Lumen’s EMEA business and will create additional value for its shareholders. For more information on this transaction, see Lumens 8-K filed concurrently with this press release.

The proposed transaction is subject to customary conditions and would involve Lumen’s divestment of its EMEA business, including its terrestrial and subsea networks, data centers and network equipment in the region London-Headquartered Colt. Upon closing, the transaction will advance Lumen’s strategic focus on investing in core businesses that are expected to drive long-term, profitable growth.

Benefits for Lumens:

  • The purchase price represents a strong ~11 times the estimated Adjusted EBITDA of the EMEA business for 2021.
  • Additional capital and an optimized portfolio will drive more targeted investments in business growth and help maintain Lumen’s strong balance sheet.
  • The terms of the transaction allow Lumen to continue serving multinational enterprise customers through its strategic partnership with Colt.

“At Lumen, we continue to make portfolio optimizations and create additional value for our shareholders by monetizing non-strategic assets into value multiples,” said Lumen President and CEO Jeff Storey. “This transaction would increase our focus so that we can more efficiently invest in our most strategic opportunities — our key Enterprise and Quantum Fiber initiatives — and partner with regional leaders like Colt Europe and Cirion pure Latin America to continue serving our multinational enterprise customers.”

“This transaction would mark the next chapter in Colt’s exciting history of global growth and world-class innovation,” he said Keri Gilder, CEO, Colt Technology Services. “We are determined to build exceptional connections for our employees, customers and partners across our digital infrastructure. This acquisition would strengthen and expand those connections in existing and new regions, helping us accelerate growth and bring the power of the digital universe closer to our customers.”

Colt is known for its commitment to customer experience and industry-leading environmental, social and governance (ESG) performance. Colt is a global digital infrastructure company with over 60 offices around the world. The transaction will expand Colt’s infrastructure into new geographic markets and enhance the services and capabilities it offers to global corporations and strategic partners.

Advantages for Colt:

  • Expands Colt’s network to more countries, European cities and data centers, giving businesses everywhere access Europe advanced connectivity for fiber optic networks.
  • Provides Colt with access to a full range of product solutions for diversified enterprise, hyperscaler, government and wholesale customers.
  • Positions Colt to handle growing corporate and international IP traffic in EMEA over extensive terrestrial and subsea coverage.

strategic partnership

Most of Lumen’s EMEA employees would transfer to Colt after the transaction closes. Colt and Lumen will establish a strategic relationship that will enable Lumen to continue to provide a seamless experience to its multinational customers with requirements in EMEA. The partnership will also allow Colt to continue to serve the needs of EMEA-based customers with service requirements outside of EMEA.

“Lumen has a strong interest in Colt’s success and we look forward to remaining a close business partner and key customer,” said Storey. “Colt’s strong reputation and customer focus make them the ideal partner to meet our customers’ needs and we expect to remain Colt’s partner of choice for their customers’ needs North America.”

“Colt and Lumen share common values ​​and a commitment to provide outstanding customer experiences,” said Gilder. “Powered by amazing people and incredible infrastructure, this combination is inspired by technology’s ability to transform the way we live and work.”

Lumen and Colt expect the transaction to close in late 2023, subject to obtaining regulatory approvals in the United States and certain countries where Colt operates, as well as other customary conditions.

The purchase agreement contains various customary provisions for transactions of this type, including various waivers and purchase price adjustments.

Morgan Stanley & Co. LLC is acting as Lumen’s financial advisor in connection with the transaction and Bryan Cave Leighton Paisner LLP is acting as Lumen’s legal advisor. Evercore Group LLC is acting as financial advisor to Colt and Baker & McKenzie LLP is acting as legal advisor to Colt in connection with the transaction.

About lumens
Lumen is guided by our belief that humanity is at its best when technology advances the way we live and work. With approximately 400,000 fiber miles and customers in more than 60 countries, we deliver the fastest, most secure platform for applications and data to help businesses, governments and communities create amazing experiences.

Learn more about the Lumen network, edge cloud, security, communications and collaboration solutions, and our goal of powering human progress through technology at, LinkedIn: /lumentechnologies, Twitter: @lumentechco , Facebook: /lumentechnologies, Instagram: @lumentechnologies and YouTube: /lumentechnologies. Lumen and Lumen Technologies are registered trademarks in The United States.

About Colt

Colt Technology Services (Colt) is a global digital infrastructure company that creates exceptional connections to help businesses thrive. Driven by like-minded partners and great people, Colt’s mission is to put the power of the digital universe in the hands of its customers, where, how and whenever they want.

Since 1992, Colt has differentiated itself through a deep commitment to its customers and has grown from its heritage in the industry City of London at more than 60 offices around the world. The powerful Colt IQ Network connects 222 cities and 32 countries with more than 1000 data centers, 51 metropolitan area networks and over 31,000 buildings Europe, Asia and North America largest economic centers. Colt is privately held and one of the most financially sound companies in the industry.

Colt is obsessed with delivering industry-leading customer experiences and is guided by its commitment to customer innovation, its values ​​and its responsibilities to its customers, partners, people and our planet.

For more information, please visit

Forward-Looking Statements Except for historical and factual information contained herein, the matters set forth in this press release, including statements regarding expected transaction proceeds, timing and benefits of proposed transactions and other statements identified by words such as “estimates”, “expects”, “projects” , “plans,” “intend,” “will,” and similar expressions are forward-looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a number of risks, uncertainties and assumptions, of many of which are beyond our control. Actual events and results could differ materially from those anticipated, estimated or projected if one or more of these risks or uncertainties materializes, or underlying assumptions prove incorrect. Among the factors affecting actual results include, but are not limited to: the parties’ ability to timely and successfully obtain necessary regulatory approvals; the possibility that anticipated benefits from the proposed transaction may not materialize as anticipated; the possibility that it may be more difficult than anticipated to separate the Company’s EMEA business from its other businesses in connection with the divestment; the possibility that post-closing commercial relationships between the parties may not function as currently anticipated; the possibility that the Company may incur higher than anticipated tax payments, make unexpected payments under the transaction agreements or otherwise receive less net income than anticipated; the possibility that the Company’s customers, suppliers or employees may react adversely to the divestment; changes in the Company’s liquidity needs, financial condition or business, operating or financial plans; the effects of competition from multiple competing vendors; Buyer’s ability to successfully maintain the quality of its product and service offerings and to introduce new offerings in a timely and cost-effective manner; and other risk factors and cautionary statements as may be identified from time to time in the Company’s reports filed with the US Securities and Exchange Commission. There can be no assurance that the proposed divestiture of the Company’s EMEA business will proceed in the manner described or at all. You should be aware that new factors may emerge from time to time and it is not possible for us to identify all such factors, nor can we predict the impact of each of these factors on the proposed transaction. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, the Company undertakes no obligation, and expressly disclaims any such obligation, to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, any information about our intentions contained in our forward-looking statements reflects our intentions as of the date of such forward-looking statements and is based, among other things, on regulatory, technological, industry, competitive, economic and market conditions and our associated assumptions thereon Time. We may change our intentions, strategies or plans at any time and for any reason.

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SOURCE Lumen Technologies


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