DENVER-Qwest Communications International Inc. reached an agreement to sell its QwestDex publishing business for $7.05 billion to a group formed by the private equity firms of The Carlyle Group and Welsh, Carson, Anderson & Stowe.
Qwest said the sale would take place in two stages with the first expected to close in the fourth quarter of this year and the second sometime next year. The first stage is valued at $2.75 billion and involves the sale of operations in Colorado, Iowa, Minnesota, Nebraska, New Mexico, North Dakota and South Dakota. The second stage, which is valued at $4.3 billion, includes operations in Arizona, Idaho, Montana, Oregon, Utah, Washington and Wyoming.
The sale is expected to help the embattled telecommunications provider reduce its approximately $25 billion in debt and strengthen its financial position.
“The sale of QwestDex is a significant part of our plan to delever and strengthen our balance sheet and will allow us to focus on maximizing the profitability of our core operations,” said Richard Notebaert, chairman and chief executive officer of Qwest.
