Lumen Technologies has sold its CenturyLink telecommunications operations in Tennessee and neighboring states to Apollo Global Management Inc.
The $7.5 billion deal was announced in early August and includes all of Lumen’s incumbent local exchange carrier operations in a 20-state region.
An incumbent local exchange carrier, or an ILEC, is defined in the telecommunications industry as a local telephone company that held the regional monopoly on landline service before the market was opened to competitive local exchange carriers, or is the corporate successor of such a pre-existing business.
CenturyLink currently provides landline telephone and digital subscriber line or DSL internet services in Northeast Tennessee, as well as to customers in Virginia, North Carolina and Georgia.
With the transaction, the investment group acquires Lumen’s consumer, small business, wholesale and mostly copper-served enterprise customers and assets.
Lumen’s deal with Apollo Funds is expected to close in the second half of 2022, and is subject to the approval of regulatory agencies.
Officials with Lumen said on the company’s website that “the business will operate as usual until the transaction is complete.” The company also said “Apollo will be communicating with customers to keep them informed of any future changes.”
Lumen will retain its ILEC assets in 16 western states, as well its national fiber routes and competitive local exchange carrier networks.
“This transaction is an important step in our continued efforts to transform Lumen and drive future growth for our company,” Jeff Storey, Lumen president and CEO, said in a news release. “We are pleased with the attractive valuation we received for these assets, which highlights the overall value of Lumen’s extensive asset portfolio.”
Lumen officials said the deal would allow the company to focus on investments in its “most attractive markets where we see an opportunity to drive growth.”