Lumen Technologies has sold its Latin American business to Stonepeak Infrastructure Partners for $2.7 billion.

Under the deal, Lumen will divest its Latin American business, which will operate as an independent, US-headquartered portfolio company under the investment firm.

The companies expect the transaction to close in the first half of 2022. AustralianSuper, Australia's largest pension fund, is investing alongside Stonepeak in the deal.

Lumen’s current Latin American leadership team and organization will remain in place at the currently unnamed ‘New LATAM Company’ led by Hector Alonso, Lumen's president for the region. Lumen will also retain a strategic relationship with the New LATAM Company and continue to serve joint customers in the region.

“This transaction unlocks value for our shareholders while allowing us to maintain our global presence through our strategic relationship with the New LATAM Company," said Lumen President and CEO Jeff Storey. "This transaction allows Lumen to focus investments in key areas of the business to drive future growth while providing flexibility for our capital allocation strategy.”

Specifics of what will be changing hands haven’t been shared, but the companies say the relationship includes “reciprocal reselling and network arrangements that leverage each other's extensive fiber footprints, data centers, and other network assets.”

Stonepeak said the transaction represents “an opportunity to invest in a Latin American communications platform with an extensive subsea, terrestrial fiber, and data center footprint” across the region.

CenturyLink, Inc rebranded as Lumen last year. The CenturyLink brand is used as the customer-facing brand for traditional copper-based services, while fiber-based services are offered under the Quantum Fiber moniker.

On its website, Lumen says it has at least nine data center facilities across Latin America from which it offers services; three in Brazil (Curitiba, Rio De Janeiro, and Sao Paulo) as well as single locations in Venezuela, Peru, Ecuador, Chile, Colombia, and Argentina.

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