AT&T Announces Strategic Alliance with Brookfield Infrastructure to Offer Colocation, Other Services
21 June 2018 - 9:00PM
Business Wire
AT&T* today announced a new strategic alliance with
Brookfield Infrastructure and its institutional partners
(“Brookfield”) pursuant to which AT&T 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:
- Data Center Connectivity – Industry
leading connectivity services including Ethernet, Internet and
VPN.
- AT&T NetBond® for Cloud – A
scalable, predictable and highly secure connection to the
cloud.
- AT&T FlexWareSM – Simplifies
delivering and deploying software-based functions like routers and
firewalls using Software-Defined Networking (SDN) and Network
Function Virtualization (NFV) technologies. It streamlines network
infrastructure and has the potential to lower businesses’ capital
investments.
- Cloud and Data Center Consulting –
AT&T offers businesses highly skilled experts who provide
consultation and design around data center, cloud and network
migrations.
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.
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**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.
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version on businesswire.com: https://www.businesswire.com/news/home/20180621005176/en/
AT&T Corporate CommunicationsErin McGrath,
214-862-0651erin.mcgrath@att.com
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