MONROE, La., -- CenturyLink today announced it completed the previously announced sale of its data centers and colocation business on May 1 to funds advised by BC Partners, in a consortium including Medina Capital Advisors and Longview Asset Management.

CenturyLink has received approximately $1.86 billion of pre-tax net cash proceeds, subject to certain post-closing adjustments, and an approximately 10% equity stake in the consortium's newly formed global secure infrastructure company, Cyxtera Technologies. CenturyLink plans to use the net after-tax proceeds from this sale to partly fund its acquisition of Level 3 Communications announced on Oct. 31, 2016.

"This sale allows CenturyLink to drive greater focus on our network infrastructure while still having the ability to sell colocation services in these data centers," said Glen F. Post III, chief executive officer and president of CenturyLink. "CenturyLink provides reliable and secure network solutions that are critical to the success of businesses which increasingly rely on digital connections to help ensure the growth and success of their operations. Additionally, our hosting and cloud services, combined with our robust IT services and solutions, offer customers an impressive suite of complementary services."

Under terms of the agreement, Cyxtera assumes ownership of CenturyLink's portfolio of 57 data centers which includes approximately 195 megawatts of power across 2.6 million square feet of raised floor capacity. Approximately 700 CenturyLink employees will transition to Cyxtera.

CenturyLink's minority stake in Cyxtera signals CenturyLink's ongoing commitment to colocation. CenturyLink intends to continue to offer colocation services as part of its hybrid IT offerings through its commercial relationships with Cyxtera.

CenturyLink Inc. (NYSE: CTL)