AT&T (NYSE: T) has announced a new strategic alliance with Brookfield Infrastructure and its institutional partners pursuant to which AT&T will transfer data center colocation operations and assets to Brookfield, the company said.
Under Brookfield´s ownership, the business will continue to deliver colocation services to customers in 18 Internet Data Centers (IDCs) in the United States and 13 outside the United States. The colocation data center operations serve a diversified customer base of more than 1,000 companies across the technology, financial, industrial, media retail and other sectors worldwide.
Under terms of the agreement, AT&T will receive USD 1.1 billion, which it will use to pay down debt. At close, customer contracts, employees supporting the colocation operations, fixed assets, leased and owned facilities will transfer to Brookfield.
The transaction is subject to customary closing conditions including regulatory approvals. Closing is expected to occur within six to eight months.