CenturyLink is selling its data centers and colocation business to funds advised by BC Partners for $2.15 billion in cash.
CenturyLink said it plans to use the proceeds to fund its acquisition of Level 3 Communications announced on October 31, 2016. CenturyLink has 57 data centers including approximately 195 megawatts of power across 2.6 million square feet of raised floor capacity.
“This transaction will benefit customers, employees and investors. Both CenturyLink and BC Partners have a strong customer focus and are committed to ensuring a seamless transition of the customers and their colocation environments,” said Glen F Post III, chief executive officer and president of CenturyLink.
CenturyLink will focus on offering IT services and solutions, including network, managed hosting and cloud. Though it will not own the data centers, CenturyLink will offer colocation services as part of its product portfolio through its relationships with the BC Partners/Medina-led consortium.
