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.
