PR98604

DENVER and LONDON, Nov. 3, 2022 /PRNewswire=KYODO JBN/ --

Lumen Technologies (

https://c212.net/c/link/?t=0&l=en&o=3697016-1&h=3524347467&u=https%3A%2F%2Fc212.net%2Fc%2Flink%2F%3Ft%3D0%26l%3Den%26o%3D3158920-1%26h%3D931541880%26u%3Dhttps%253A%252F%252Fwww.lumen.com%252Fen-us%252Fhome.html%26a%3DLumen%2BTechnologies&a=Lumen+Technologies

) (NYSE: LUMN) and Colt Technology Services (

https://c212.net/c/link/?t=0&l=en&o=3697016-1&h=3580451739&u=https%3A%2F%2Fwww.colt.net%2F&a=Colt+Technology+Services

) (Colt), a digital infrastructure company, announce today they have entered

into an exclusive arrangement for the proposed sale of Lumen's Europe, Middle

East and Africa (EMEA) business to Colt for $1.8 billion. This represents a

very attractive multiple (~11x) for Lumen's EMEA business and will create

additional value for its shareholders. More information on this transaction can

be found in Lumen's 8-K to be contemporaneously filed with this release.

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The envisaged transaction is subject to customary conditions and would involve

the divestiture by Lumen of its EMEA business, including its terrestrial and

subsea networks, data centers and network equipment in the region to

London-headquartered Colt. Upon completion, the transaction will further

Lumen's strategic focus on investing in core businesses that are expected to

drive long-term, profitable growth.

Benefits to Lumen:

    --Purchase price represents a strong ~11x multiple of the EMEA business's

      estimated 2021 adjusted EBITDA.

    --Additional capital and a streamlined portfolio will drive more focused

      investments on enterprise growth and help maintain Lumen's strong balance

      sheet.

    --The terms of the transaction enable Lumen to continue to serve

      multinational enterprise customers through its strategic partnership with

      Colt.

"We are continuing to execute on portfolio optimization at Lumen, creating

additional value for our shareholders by monetizing non-strategic assets at

accretive multiples," said Lumen President and CEO Jeff Storey. "This

transaction would enhance our focus so we can invest more efficiently in our

most strategic opportunities – our key Enterprise and Quantum Fiber initiatives

– and partner with regional leaders like Colt in Europe and Cirion in Latin

America to continue serving our multinational enterprise customers."

"This transaction would mark the next chapter in Colt's exciting story of

global growth and world-class innovation," said Keri Gilder, CEO, Colt

Technology Services. "We're deeply committed to building extraordinary

connections for our people, customers and partners across our digital

infrastructure. This acquisition would strengthen and extend these connections

across existing and new geographies, helping us to accelerate growth and bring

the power of the digital universe closer to our customers."

Known for its commitment to customer experience and its industry-leading

environmental, social and governance (ESG) performance, Colt is a global

digital infrastructure business with over 60 offices around the world. The

transaction will extend Colt's infrastructure to new geographic markets,

boosting the services and capabilities it delivers to global enterprises and

strategic partners.

Benefits to Colt:

    --Extends Colt's network into additional countries, European cities and  

      data centers, offering businesses throughout Europe expanded fiber  

      network connectivity.

    --Offers Colt access to a full range of product solutions for diversified

      Enterprise, Hyperscaler, Government and Wholesale customers.

    --Positions Colt to meet growing enterprise and international IP traffic in

      EMEA via extensive terrestrial and subsea reach.

Strategic partnership

Most of Lumen's EMEA employees would join Colt after the transaction closes.

Colt and Lumen will establish a strategic relationship that will enable Lumen

to continue delivering a seamless experience for its multinational customers

with needs in EMEA. The partnership will also allow Colt to continue serving

the needs of the EMEA-based customers with service needs outside of EMEA.

"Lumen has a strong interest in Colt's success, and we expect to remain a close

business partner and key customer," said Storey. "Colt's strong reputation and

customer focus make them the ideal partner to serve the needs of our customers,

and we expect to remain Colt's partner of choice for their customers' needs in

North America."

"Colt and Lumen share values, and a drive to deliver outstanding customer

experience," said Gilder. "This combination is powered by amazing people and

incredible infrastructure and is inspired by technology's ability to change the

way we live and work."

Lumen and Colt envisage the transaction would close as early as late 2023 upon

receipt of all regulatory approvals in the U.S. and certain countries where

Colt operates, as well as the satisfaction of other customary conditions.

The purchase agreement contains various customary covenants for transactions of

this type, including various indemnities and purchase price adjustments.

Morgan Stanley & Co. LLC is acting as financial advisor to Lumen in connection

with the transaction, and Bryan Cave Leighton Paisner LLP is serving as legal

advisor to Lumen. Evercore Group L.L.C. is acting as financial advisor to Colt

in connection with the transaction and Baker & McKenzie LLP is serving as legal

advisor to Colt.

About Lumen

Lumen is guided by our belief that humanity is at its best when technology

advances the way we live and work. With approximately 400,000 route fiber miles

and serving customers in more than 60 countries, we deliver the fastest, most

secure platform for applications and data to help businesses, government and

communities deliver amazing experiences.

Learn more about the Lumen network, edge cloud, security, communication and

collaboration solutions and our purpose to further 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 Colt

Colt Technology Services (Colt) is a global digital infrastructure company

which creates extraordinary connections to help businesses succeed. Powered by

like-minded partners and amazing people, Colt is driven by its purpose: to

place the power of the digital universe in the hands of its customers,

wherever, however and whenever they choose.  

Since 1992, Colt has set itself apart through its deep commitment to its

customers, growing from its heritage in the City of London to more than 60

offices around the world. The powerful Colt IQ Network connects 222 cities and

32 countries with more than 1000 data centres, 51 Metropolitan Area Networks

and over 31,000 buildings across Europe, Asia and North America's largest

business hubs. Privately owned, Colt is one of the most financially sound

companies in the sector.

Obsessed with delivering industry-leading customer experience, Colt is guided

by its dedication to customer innovation, by its values and its responsibility

to its customers, partners, people and planet.

For more information, please visit www.colt.net

Forward-looking Statements Except for the historical and factual information

contained herein, the matters set forth in this press release, including

statements regarding the expected transaction proceeds, timing and benefits of

the proposed transactions, 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 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 ability of the parties to timely

and successfully receive the required approvals of regulatory agencies; the

possibility that the anticipated benefits from the proposed transaction cannot

be realized in the manner contemplated; the possibility that it may be more

difficult than anticipated to segregate the Company's EMEA business from its

other businesses in connection with the Divestiture; the possibility that the

post-closing commercial relationships between the parties will not operate in

the manner currently contemplated; the possibility that the Company might be

required to pay higher than anticipated tax payments, to make unanticipated

payments under the transaction agreements or to otherwise receive less net cash

proceeds than anticipated; the possibility that the Company's customers,

vendors or employees could react unfavorably to the Divestiture; changes in the

Company's cash requirements, financial position or business, operational or

financial plans; the effects of competition from a wide variety of competitive

providers; the purchaser's ability to successfully maintain the quality of its

product and service offerings and to introduce new offerings on a timely and

cost-effective basis; and other risk factors and cautionary statements as

detailed from time to time in the Company's reports filed with the U.S.

Securities and Exchange Commission. There can be no assurance that the

Company's proposed Divestiture of its EMEA business will in fact be consummated

in the manner described or at all. You should be aware that new factors may

emerge from time to time, and it is not possible for us to identify all such

factors, nor can we predict the impact of each such factor on the proposed

transaction. You should not place undue reliance on these forward-looking

statements, which speak only as of the date of this press release. Unless

legally required, 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. Furthermore, any

information about our intentions contained in any of our forward-looking

statements reflects our intentions as of the date of such forward-looking

statement, and is based upon, among other things, regulatory, technological,

industry, competitive, economic and market conditions, and our related

assumptions, as of such date. We may change our intentions, strategies or plans

without notice at any time and for any reason.

SOURCE Lumen Technologies

Media Contacts: Stephanie Meisse, Lumen, 419-610-3142,

stephanie.n.meisse@lumen.com; Anne Amlot, Colt, +447899 950730,

anne.amlot@colt.net