Yesterday CenturyLink completed the sale of its data centers and colocation business to a consortium of private equity buyers that they announced last November. That consortium, which includes BC Partners, Medina Capital Advisors, and Longview asset Management, has re-launched the assets as part of a new company, Cyxtera Technologies.
Cxtera begins its life with 57 data centers making up a footprint that spans 2.6 million square feet of raised floor capacity and 195MW of power. Along with the CenturyLink infrastructure, the new entity includes the four smaller companys Cryptzone, Brainspace, Catbird, and Easy Solutions. Taking the helm as CEO is Manuel Medina, former CEO of Terremark before the sale to Verizon and the driver behind consortium member Medina Capital Advisors.
Verizon's sale of those Terremark assets (and others) to Equinix also closed the other day, coincidentally.
Meanwhile, CenturyLink ks keeping a foothold in the company with a stake of about 10% to go along with net cash of $1.86B before taxes. Those funds will go toward the company's larger purchase of Level 3 Communications, which is still expected to close in Q3. CenturyLink has retained the hosting and cloud assets that run out of those data centers and will be a significant tenant of Cyxtera both for their own capacity and for ongoing sales to customers. Some 700 CenturyLink employees have made the shift over and will be needing new business cards.