Tuesday, August 2, 2022

Cirion spins out of Latin American operations from Lumen

Cirion, previously the Latin American operations of Lumen Technologies, officially launched as an independent company with approximately 86,000 kms of fiber, an extensive subsea cable network, and data centers in major economic centers across Central and South America.

Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets, acquired the Cirion assets for US$2.7 billion. 

Lumen acquired the Latin American business in 2011 when it acquired the business of Global Crossing.

Cirion and Lumen plan to maintain a strategic partnership covering reciprocal reselling and network agreements that leverage each other’s extensive fiber footprints, data centers, and other network assets. 

All of Lumen’s LATAM employees and employees in the United States who are part of the LATAM organization, including its current leadership team, transferred to Cirion as part of the transaction.

“We believe technology is key to our digital future and know what it takes to drive industry change. We are confident that we have the right people, partners, and resources to bring fast, reliable, and exceptional services to our customers,” said Facundo Castro, CEO of Cirion. “We are very enthusiastic about the opportunities that lay ahead and look forward to positioning ourselves as the technological partner of choice for Latin America’s most relevant industries.”

“Closing this transaction marks the beginning of an exciting new chapter for Cirion as the company continues to expand its fiber and data center network across its already strong footprint in Latin America,” said Stonepeak Managing Director and Co-Head of Communications Andrew Thomas. “We are excited to partner with Cirion’s team and apply our experience as active investors in global digital infrastructure to drive sustainable long-term growth.”

"This divestiture is an important step in achieving Lumen's strategic goals as we sharpen our focus on key strategic assets while also providing our LATAM employees and customers an opportunity for continued growth," said Jeff Storey, Lumen President and CEO. "This transaction also positions our Lumen Platform for long term growth, allowing Lumen to invest in a strategic mix of assets and alliances that allows us to deliver what our customers want anywhere in the world."