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Lumen to Buy Alkira for $475 Million

The strategy centers on software-defined connectivity for AI-heavy workloads.

Overview

  • Lumen agreed Wednesday to buy cloud-networking firm Alkira for $475 million in cash.
  • Alkira’s cloud control software manages connections across hybrid and multi‑cloud setups, which Lumen plans to pair with its global fiber to offer a programmable network customers can spin up quickly.
  • CFO Chris Stansbury said the purchase largely completes Lumen’s digital platform and avoids building the same tools in-house.
  • The companies expect to close in the third quarter of 2026 subject to regulatory approval.
  • Alongside the deal, Lumen reported $2.9 billion in Q1 revenue and a $0.47 adjusted loss per share, and it raised 2026 free cash flow guidance to $1.9–$2.1 billion after auditors moved $729 million from an AT&T fiber sale into operating cash flow.