[June 21, 2018] |
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AT&T Announces Strategic Alliance with Brookfield Infrastructure to Offer Colocation, Other Services
AT&T*
today announced a new strategic alliance with Brookfield Infrastructure
and its institutional partners ("Brookfield") pursuant to which AT&T (News - Alert)
will transfer data center colocation operations and assets to
Brookfield. 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.
AT&T and Brookfield are committed to delivering the same high level of
service their customers expect. After the close of the transaction, AT&T
will continue to deliver network services to its customers at the IDCs.
AT&T will become an active sales channel for the business and will be
the anchor tenant of the colocation operations. AT&T will continue to
offer customers access to colocation services at more than 350 data
centers - including transferred IDCs - around the world as part of
AT&T's colocation ecosystem program.
Brookfield brings a long track record of owning and managing essential
infrastructure assets and global scale and expertise to enhance and grow
the business. Brookfield is one of the world's largest investors, owners
and operators of infrastructure assets globally, with more than $75
billion in assets under management across the communications
infrastructure, utilities, transport, energy, renewable power, and
sustainable resources sectors.
Brookfield is establishing a wholly-owned company to own and operate the
assets and intends to appoint Tim Caulfield as CEO of the business. Mr.
Caulfield is currently CEO of ANTARA Group, an IT management consultancy
focused on the Internet-as-a-Service segment with extensive experience
in data center services. Mr. Caulfield's leadership team includes
veterans of AT&T and other leading communications and technology
companies.
This agreement builds on AT&T's nearly 20-year history of providing
customers access to premier data centers. The strategic alliance with
Brookfield will build on the success of the ecosystem model, allowing
AT&T to continue to offer colocation services through Brookfield. Over
the past several years, AT&T has added additional data center providers
to this ecosystem. AT&T and Brookfield will also work under a joint
marketing agreement that will enable both companies to participate in
sale/resale opportunities to bring customers a full suite of services.
AT&T remains committed to delivering best-in-class services to
businesses around the globe and will continue to provide the same access
to premium data centers and networking services, including security,
cloud networking and mobility, that it provides today. These include:
Financial and Closing
Under terms of the agreement, AT&T will receive $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.
*About AT&T Communications
We help family, friends and neighbors connect in meaningful ways every
day. From the first phone call 140+ years ago to mobile video streaming,
we innovate to improve lives. We have the nation's largest and most
reliable network and the nation's best network for video streaming.**
We're building FirstNet
just for first responders and creating next-generation mobile 5G. With DIRECTV
and DIRECTV
NOW, we deliver entertainment people love to talk about. Our smart,
highly secure solutions serve over 3 million global businesses - nearly
all of the Fortune 1000. And worldwide, our spirit of service drives
employees to give back to their communities.
AT&T Communications is part of AT&T Inc. (NYSE:T).
Learn more at att.com/CommunicationsNews.
AT&T products and services are provided or offered by subsidiaries and
affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.
Additional information about AT&T products and services is available at about.att.com.
Follow our news on Twitter at @ATT, on Facebook (News - Alert) at facebook.com/att
and on YouTube (News - Alert) at youtube.com/att.
© 2018 AT&T Intellectual Property. All rights reserved. AT&T, the Globe
logo and other marks are trademarks and service marks of AT&T
Intellectual Property and/or AT&T affiliated companies. All other marks
contained herein are the property of their respective owners.
**Coverage not available everywhere. Based on overall coverage in U.S.
licensed/roaming areas. Reliability based on voice and data performance
from independent 3rd party data.
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates
and other forward-looking statements that are subject to risks and
uncertainties, and actual results might differ materially. A discussion
of factors that may affect future results is contained in AT&T's filings
with the U.S. Securities and Exchange Commission. AT&T disclaims any
obligation to update and revise statements contained in this news
release based on new information or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180621005176/en/
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