Telecom giant AT&T has closed its previously announced transaction to acquire substantially all of Lumen’s Mass Markets fiber business for $5.75 billion in an all-cash transaction, subject to customary adjustments.
The transaction expands AT&T’s fiber network to American 32 states and adds more than a million new subscribers.
The acquisition marks a significant shift in the US telecom market. It gives AT&T access to over 4 million new locations in major metropolitan areas such as Denver, Seattle, and Salt Lake City. AT&T aims to roll out fiber to a total of 60 million locations by the end of 2030.
“AT&T Fiber will be available to millions more people as we expand the service in 32 states,” said John Stankey, Chairman and CEO of AT&T. “This investment will create good-paying jobs, boost U.S. connectivity and bring the benefits of high-speed connections to more communities across the country.”
The acquisition was settled entirely in cash. AT&T expects to quickly increase its current network utilization in the new areas—currently around 25%—by leveraging its extensive distribution network.
