New Strategic Relationship Between Lumen and Cirion Delivers Benefits to Customers of Both Companies
DENVER, August 1, 2022 /PRNewswire/ — Lumen Technologies (NYSE: LUMN) today announced that it has officially completed the sale of its Latin American operations to Stonepeak for $2.7 billion in cash. This Latin American company is called Cirion and operates as an independent holding company of Stonepeak.
- Lumen and Cirion have established a strategic relationship to serve both companies’ customers in the region who will benefit from this continued association.
- The $2.7 billion transaction provides additional capital to enable Lumen to invest in key growth areas and support the company’s other capital allocation priorities, including continued debt repayment .
- Stonepeak has appointed Lumen’s LATAM Regional President, Facundo Castro, as Cirion’s new CEO and retains the current management team and existing employees. Cirion has also added several new hires in recent months to the company’s leadership team, all of whom bring extensive industry experience across the region.
Click here for more information on today’s announcement: https://news.lumen.com/image/LATAM-Cirion-Transaction-FAQ.pdf
“This divestiture is an important step in achieving Lumen’s strategic objectives as we refine our focus on key strategic assets while providing our LATAM employees and customers with an opportunity for continued growth,” said Jeff Storey, President and Chief Executive Officer. from the direction of Lumen. “This transaction also positions our Lumen platform for long-term growth, allowing Lumen to invest in a strategic combination of assets and alliances that enables us to deliver what our customers want around the world.
Lumen and Cirion have established a strategic relationship to serve customers in the region. This includes reciprocal resale and network agreements that take advantage of each other’s large fiber optic footprints, data centers and other network assets.
“We share Jeff’s enthusiasm for Cirion’s opportunity in Latin America, given the platform’s strong footprint and its ambition to continue to expand its fiber and data center network throughout the region.” said Andrew Thomas, Stonepeak’s managing director and co-head of communications. “We are excited to partner with the Cirion team and apply our experience as active investors in global digital infrastructure to drive long-term sustainable growth.”
About Lumen Technologies and Lumen People:
Lumen is guided by our belief that humanity is at its best when technology advances the way we live and work. With approximately 450,000 miles of fiber optics and serving customers in more than 60 countries, we offer the fastest and most secure platform for applications and data to help businesses, governments and communities deliver amazing experiences. Learn more about the Lumen Network, edge cloud, security, communication and collaboration solutions and our goal to drive human progress through technology on news.lumen.com/home, LinkedIn: /lumentechnologies, Twitter: @lumentechco, Facebook: /lumentechnologies, Instagram: @lumentechnologies and YouTube: /lumentechnologies. Lumen and Lumen Technologies are US registered trademarks.
About Stone Peak
Stonepeak is a leading alternative investment firm specializing in infrastructure and real estate assets with approximately $49.3 billion in assets under management. Through its investments in defensive businesses with sustainable assets globally, Stonepeak aims to create value for its investors and portfolio companies, and to have a positive impact on the communities in which it operates. Stonepeak sponsors investment vehicles focused on private equity and credit. The company provides capital, operational support and committed partnership to sustainably increase investment in its target sectors, including communications, energy transition, transport and logistics, and social infrastructure. Stonepeak is headquartered in New York with offices in Austin, Hong Kong, Houston, London and Sydney. For more information, please visit www.stonepeak.com.
Cirion is a leading provider of digital infrastructure and technology, offering a full suite of fiber optic networks, connectivity, colocation, cloud infrastructure, and communication and collaboration solutions to enable Latin American progress through technology. Cirion serves more than 6,400 Latin American-based and multinational customers, including enterprises, government agencies, cloud service providers, wireline and wireless carriers, ISPs and other leading enterprises. Cirion owns and operates a facilities-based network and data center portfolio, with extensive coverage spanning the entire Latin America region. Learn more about Cirion at www.ciriontechnologies.com
Except for historical and factual information contained in this press release, the matters set forth in this press release, including statements regarding the proceeds of the transaction and the expected benefits of the transactions and alliances, and other statements identified by words such as “estimates”, “expects”, “projects”, “plans”, “intends”, “will” and similar expressions, are forward-looking statements within the meaning of the provisions of the ” safe harbor” of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, many of which are beyond our control. Actual events and results may differ materially from those anticipated, estimated or projected if one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect. Factors that could affect actual results include, but are not limited to: the possibility that the anticipated benefits of transactions and alliances may not be fully realized in the manner contemplated; the possibility that it may be more difficult than expected to separate the Company’s Latin American operations from its other businesses in connection with the divestiture; the possibility that the Company may be required to pay higher taxes than expected, make unscheduled payments under settlement agreements or otherwise receive less net cash proceeds than expected; changes in the Company’s cash requirements, financial condition or business, operational or financial plans; the effects of competition from a wide variety of competing suppliers; Buyer’s ability to successfully maintain the quality and profitability of its product and service offerings and to introduce new offerings on a timely and cost-effective basis; and other risk factors and warnings as detailed from time to time in the Company’s reports filed with the United States Securities and Exchange Commission. You should be aware that new factors may emerge from time to time and it is not possible for us to identify all of these factors or to predict the impact of each of these factors on transactions and alliances. 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 obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
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