And the week in M&A is still going on. CenturyLink this morning followed up its announcement to buy Level 3 Communications with another one selling its data centers and colo business to private equity.
CenturyLink has entered into an agreement to sell the division to a consortium of funds advised by BC Parnters and led by Medina Capital Advisors and Longview Asset Management. They'll get $2.15B in cash and keep a minority stake worth $150M in the new company. They'll use those funds to help fund the cash portion of the Level 3 deal.
A big piece of of CenturyLink's colo business came from the Savvis acquisition back in the spring of 2011, and contains a portfolio of 57 data centers stretching across 2.6 million square feet of space fed by some 195MW. As for the hosting and cloud business that runs within those data centers? CenturyLink is going to be keeping those to continue to serve the enterprise and business markets.
Just what the private equity guys have in mind is another matter. They are also buying a suite of security companies to go with it: Cryptzone, Catbird, Easy Solutions, and Brainspace. This should be an interesting story going forward.