Lumen completes sale of its Latin American business to Stonepeak

The new strategic relationship between Lumn and Cirion offers advantages for customers of both companies

DENVER, August 1, 2022 /PRNewswire/ — Lumen Technologies (NYSE: LUMN) announced today that it has officially completed the sale of its Latin American operations to Stonepeak for 2.7 billion dollars cash. This Latin American company is called Cirion and operates as an independent portfolio company of Stonepeak.

Key highlights:

  • Lumen and Cirion have established a strategic relationship to serve both companies’ customers in the region, who will benefit from this ongoing connection.
  • The 2.7 billion dollars The transaction provides additional capital to enable Lumen to invest in key growth areas and support the company’s other capital allocation priorities, including ongoing debt repayment.
  • Stonepeak appointed Lumen LATAM Regional President, Facundo Castro, as the new CEO of Cirion and retaining the current executive team and existing employees. Cirion has also added several new associates to the company’s executive team in recent months, all of whom bring a wealth of experience in the sector across the region.

Visit 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 goals as we focus on key strategic assets while providing our employees and customers in LATAM with the opportunity for further growth,” he said. Jeff Storey, President and CEO of Lumen. “This transaction also positions our Lumen platform for long-term growth, allowing Lumen to invest in a strategic mix of assets and alliances that allow us to deliver what our customers want anywhere in the world.”

Lumen and Cirion have established a strategic relationship to serve customers in the region. It involves mutual reselling and network arrangements that leverage each other’s vast optical footprints, data centers and other network assets.

“We share Jeff’s excitement about Cirion’s opportunity Latin Americagiven the platform’s strong footprint and ambitions to further expand its fiber network and data centers across the region,” he said Andrew Thomas, Stonepeak’s Managing Director and Co-Head of Communications. “We are excited to partner with the Cirion team and use our experience as active investors in global digital infrastructure to drive sustainable long-term growth.”

Additional resources:

About Lumen Technologies and the Lumen people:

Lumen is driven by our belief that humanity is at its best when technology advances our lives and work. With approximately 450,000 miles of fiber and customers in more than 60 countries, we provide the fastest and most secure application and data platform that helps businesses, governments and communities deliver incredible experiences. Learn more about the Lumen network, edge cloud, security, communication and collaboration solutions and our purpose of furthering human progress through technology at news.lumen.com/home, LinkedIn: /lumentechnologies, Twitter: @lumentechco, Facebook: /lumentechnologies, Instagram: @lumentechnologies and YouTube: /lumentechnologies. Lumen and Lumen Technologies are registered trademarks in the United States.

About Stonepeak

Stonepeak is a leading alternative investment firm specializing in infrastructure and real assets with approx 49.3 billion dollars assets under management. Through its investments in distressed defensive companies around the world, Stonepeak aims to create value for its investors and portfolio companies and to positively impact the communities in which it operates. Stonepeak sponsors investment vehicles focused on private equity and credit. The company provides capital, operational support and a committed partnership for sustainable investment growth in its target sectors, which include communications, energy transition, transport and logistics, and social infrastructure. Stonepeak is based in New York with offices in Austin, Hong Kong, Houston, London and Sydney. For more information visit www.stonepeak.com.

About Cirion

Cirion is a leading provider of digital infrastructure and technology, offering a comprehensive suite of optical networks, connectivity, colocation, cloud infrastructure, and communication and collaboration solutions to accelerate Latin America’s technological advancement. Cirion serves more than 6,400 Latin Americaand multinational clients, including enterprises, government agencies, cloud service providers, wireline and wireless carriers, ISPs and other leading companies. Cirion owns and operates a portfolio of facility-based networks and data centers with extensive coverage across Latin America the region. More about Cirion at www.ciriontechnologies.com

Forward-looking statements

Except for the historical and factual information contained herein, the matters presented in this press release, including statements about expected transaction proceeds and benefits of 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 “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to numerous risks, uncertainties and assumptions, many of which are beyond our control. Actual events and results may differ materially from those expected, 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 the transactions and connections may not be fully realized in the manner anticipated; the possibility that, in connection with the divestiture, it will be more difficult than expected to separate the Company’s Latin American operations from other businesses; the possibility that the company may have to pay higher than expected tax payments, make unexpected payments under transaction agreements or otherwise receive less than expected net cash inflows; changes in the company’s cash needs, financial position or business, operational or financial plans; the effects of competition from a wide variety of competing providers; the buyer’s ability to successfully maintain the quality and profitability of its product and service offerings and to introduce new offerings in a timely and cost-effective manner; and other risk factors and cautionary statements as detailed from time to time in the Company’s filings with the US Securities and Exchange Commission. You should be aware that new factors may arise from time to time and that it is not possible to identify all such factors, nor can we predict the impact of each such factor 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. The Company undertakes no obligation, and expressly disclaims any such obligation, to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE Lumen Technologies

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