CenturyLink’s Data Center Business Renamed Under New Ownership

**Editor’s Note: Please click here for a recap of the biggest channel-impacting mergers in January.**

The new owners of CenturyLink’s former data center business have renamed it.

It’s now called Cyxtera Technologies, according to a report by Computer Business Review.

In November, CenturyLink announced it was selling its data centers and colocation business to BC Partners, in a consortium that includes Medina Capital Advisors and Longview Asset Management, for $2.15 billion in cash.

CenturyLink received a minority stake valued at $150 million in the consortium’s new global secure infrastructure company. The BC Partners/Medina Capital-led consortium assumed ownership of CenturyLink’s portfolio of 57 data centers at closing.

The data-center portfolio includes about 195 megawatts of power across 2.6 million square feet of raised floor capacity.

When the acquisition was announced, Justin Bateman, a managing partner at BC Partners, said “we are excited to be acquiring CenturyLink’s portfolio of data center assets.”{ad}

“CenturyLink has built and maintained an impressive global footprint of colocation data centers that is unparalleled for a portfolio of assets of this size,” he said. “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.”

According to Reuters, the new business has revealed plans to obtain a leveraged loan of $1.27 billion in order to tackle the U.S. government’s plans to cut tax deductibility on interest payments. It has been confirmed that Citigroup will be covering the main loan, being the first company in the United States to carry out this kind of deal in attempt to limit increased costs following tax deductions.

The loan is expected to be used to cover the overall acquisition of the data centers, which will include a total of $815 million as a first term loan, $310 million for the second term and an additional $150 million to cover credit facility and a net first leverage.

One comment

  1. Avatar Kevin H. Pollard July 12, 2017 @ 5:50 am

    Looking forward to watching the progress from this strong management team.

Leave a comment

Your email address will not be published. Required fields are marked *

The ID is: 52678