Lumen Technologies, Inc. (NYSE: LUMN) today announced it has entered into an agreement to acquire Alkira, a cloud-native, carrier-agnostic networking platform that enables enterprises to design, deploy, and operate connectivity and network services across hybrid and multi-cloud environments. The proposed transaction pairs Alkira's cloud-native control plane — the software layer that programs and orchestrates connectivity — with Lumen's fiber network, advancing Lumen's digital platform strategy to deliver cloud-like consumption for global enterprise networking.

Lumen has agreed to acquire Alkira for $475 million in an all-cash transaction. The transaction is expected to be neutral to margin in the near term and accretive as the digital platform scales, while strengthening Lumen's long-term free cash flow profile and reducing platform development execution risk and capital intensity. Lumen remains committed to its capital allocation priorities, including continued debt reduction.