CenturyLink reaches agreement to sell data centers to a consortium led by BC Partners and Medina Capital

Justin Bateman, a managing partner at BC Partners, said “We are excited to be acquiring CenturyLink’s portfolio of data center assets. CenturyLink has built and maintained an impressive global footprint of colocation data centers that is unparalleled for a portfolio of assets of this size. Led by Manny Medina and his management team at Medina Capital, these data centers will become part of a new, global secure infrastructure platform that will meet the growing and changing needs of customers today and for the future. We thank Glen Post and the entire team at CenturyLink for their partnership, and we look forward to working together to offer all the data centers’ existing customers, as well as new customers, unrivaled datacenter and colocation services.”

Under terms of the agreement, the BC Partners/Medina-led consortium will assume ownership of CenturyLink’s portfolio of 57 data centers at closing. The data center portfolio includes approximately 195 megawatts of power across 2.6 million square feet of raised floor capacity.

The purchase agreement contains various customary covenants for transactions of this type, including commitments of CenturyLink to indemnify the purchaser for certain taxes and other specified matters, subject to certain limitations.

The parties anticipate closing the transaction in the first quarter of 2017. The transaction is subject to regulatory approvals, including filings under the Hart-Scott-Rodino Antitrust Improvements Act and a review by the Committee on Foreign Investment in the United States, as well as other customary closing conditions.