Lumen sells Latin American business to Stonepeak for $2.7bn

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Lumen Technologies (Lumen) has closed the sale of its Latin American operations to Stonepeak for $2.7 billion cash.

The company says it will use the proceeds of the transaction to invest in "key growth areas" and support the Lumen's additional capital allocation priorities, including paying down its debts.

The Latin American business, named Cirion, will now operate as an independent portfolio company of Stonepeak.

"This divestiture is an important step in achieving Lumen's strategic goals as we sharpen our focus on key strategic assets while also providing our LATAM employees and customers an opportunity for continued growth," 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 allows us to deliver what our customers want anywhere in the world."

The firm has named Facundo Castro, LATAM regional president at Lumen, as the new CEO of Cirion while the current Ciron executive team and existing employees, will remain in their roles.

In addition, Lumen and Cirion have formed a partnership that will see the two continue to serve customers of both companies in the region. It includes reciprocal reselling and network arrangements that leverage each other's extensive fibre footprints, data centres, as well as other network assets.

"We share Jeff's excitement about Cirion's opportunity in Latin America, given the platform's strong footprint and ambition to continue expanding its fibre and data centre network across the entire region," said Andrew Thomas, managing director and co-head of communications at Stonepeak.

"We are excited to partner with the Cirion team and apply our experience as active investors in global digital infrastructure to drive sustainable long-term growth."