Lumen Technologies have agreed to sell their EMEA business to Colt Technology Services for $1.8B, a figure equating to an 11x multiple of the EMEA business’s estimated 2021 adjusted EBITDA. The agreement will encompass Lumen’s terrestrial and subsea networks, data centres and other network equipment in the EMEA region.
The aim for Lumen is to maintain a strong balance sheet whilst enabling them to investment more in enterprise growth, primarily enterprise and Quantum Fiber initiatives, whilst forming a strategic partnership with Colt to serve multinational enterprise customers, as well as Cirion in Latin America.
For Colt the deal further strengthens their fibre network presence in Europe with progress into additional countries, European cities and data centres.
LinkedIn suggests Lumen Technologies have around 1,300 employees in Europe, most of whom are expected to transfer to Colt Technology Services. This will facilitate Lumen continuing to offer seamless service for multinational customers with needs in EMEA, whilst the strategic partnership should help Colt better serve the needs of EMEA-based customers with service needs outside of EMEA.
Lumen President and CEO Jeff Storey said “Colt’s strong reputation and customer focus make them the ideal partner to serve the needs of our customers, and we expect to remain Colt’s partner of choice for their customers’ needs in North America.”
Keri Gilder, CEO, Colt Technology Services said “Colt and Lumen share values, and a drive to deliver outstanding customer experience,”
“This combination is powered by amazing people and incredible infrastructure and is inspired by technology’s ability to change the way we live and work.”
Evidence of this is provided by the win on Tuesday for Colt Technology Services at the 24th annual World Communication Awards where they won the Customer Experience Award.
Subject to the necessary regulatory approvals, the deal could be finalised by late 2023. Lumen is being advised by Morgan Stanley & Co. and Bryan Cave Leighton Paisner LLP whilst Colt is supported by Evercore Group L.L.C. and Baker & McKenzie LLP