By Joshua Jamerson

CenturyLink Inc. said it plans to sell its data centers and colocation business to a consortium led by BC Partners for $2.3 billion, which it will use in part to fund its planned tie-up with Level 3 Communications Inc.

Under the terms of the agreement announced Friday, CenturyLink has agreed to sell the data centers and colocation business for $2.15 billion in cash. It will also receive a $150 million minority stake in the consortium's new global secure infrastructure company.

Shares rose 2.2% to $23.50 in premarket trading.

CenturyLink last week reached a $25 billion cash-and-stock deal to buy Level 3. The deal would turnCenturyLink -- which has grown from a small Louisiana phone provider by scooping up the former Qwest and Sprint Corp.'s landlines -- into an even more corporate-focused service provider. The combined company would also keep millions of home internet subscribers, most of whom use slower digital subscriber lines.

The consortium buying the data centers includes Medina Capital Advisors and Longview Asset Management.

Under terms of the agreement, the BC Partners and Medina-led consortium will assume ownership of CenturyLink's portfolio of 57 data centers, which includes about 195 megawatts of power.

The transaction, subject to regulatory approval and closing conditions, is subject to close first quarter of 2017.

Write to Joshua Jamerson at joshua.jamerson@wsj.com

(END) Dow Jones Newswires

November 05, 2016 02:48 ET (06:48 GMT)

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