CenturyLink Said to Buy Cloud Provider Tier 3 for $200 MillionSerena Saitto
CenturyLink Inc., a telecommunications company based in Monroe, Louisiana, acquired cloud services provider Tier 3 Inc. for about $200 million, according to a person with knowledge of the matter.
CenturyLink announced the acquisition in a statement earlier today without disclosing a purchase price. With the purchase, CenturyLink will compete with Amazon.com Inc. in providing cloud-based Web services, according to the person, who asked not to be identified because the information is private. Cloud services allow customers to access software or data online instead of storing it on their own servers.
Tier 3 will become CenturyLink Cloud, a cloud development center based in Seattle, according to today’s statement. CenturyLink acquired Qwest Communications International Inc. for about $24 billion, including the value of debt, in 2011, data compiled by Bloomberg show. It also purchased Savvis Inc. that year for about $2.4 billion, the data show.
Evercore Partners Inc. advised Tier 3 on the sale.
CenturyLink fell slightly to $32.13 as of 11:14 a.m. in New York, giving the company a market value of $19 billion.
A CenturyLink spokesman declined to comment on the price of the deal.