en.Wedoany.com Reported - U.S. network services provider Lumen Technologies officially announced on May 5, 2026, that it has entered into a definitive agreement to acquire Alkira, a cloud-native, multi-vendor compatible network platform. Under the terms of the agreement, Lumen will acquire Alkira in an all-cash transaction valued at $475 million. The deal is expected to close in the third quarter of 2026, subject to customary regulatory approvals and closing conditions.
Alkira is an innovative company in the cloud networking space, whose core product is a cloud-native network platform that is independent of any specific network operator. The platform enables enterprises to easily design, deploy, and operate connectivity and network services across complex hybrid cloud and multi-cloud environments. Alkira serves a global base of enterprise customers, spanning multiple industries including financial services, technology, retail, healthcare, and manufacturing. Through this acquisition, Lumen aims to combine Alkira's cloud-native control plane—the software layer responsible for programming and orchestrating connectivity—with its own extensive fiber optic network infrastructure, thereby advancing its digital platform strategy.
Lumen CEO Kate Johnson expressed high expectations for the acquisition, stating: "With Alkira, Lumen will combine a trusted AI network with a cloud-native control plane to create a programmable network purpose-built for the AI era." Alkira CEO Amir Khan also noted that the merger will combine Alkira's cloud-native orchestration capabilities with Lumen's world-class fiber network and established commercial engine, setting a new standard for enterprises building and operating networks for a multi-cloud, AI-driven world.
This acquisition represents not only a technological integration but also a strategic expansion of its footprint. Lumen's current Network-as-a-Service (NaaS) business is primarily focused on "North-South traffic," meaning connectivity from enterprise premises to the cloud. Acquiring Alkira will allow Lumen to rapidly enter the "East-West traffic" market, which involves cloud-to-cloud and data center-to-data center interconnections (DCI), considered the fastest-growing segment of the enterprise networking market. Lumen estimates that Alkira's global coverage and cloud-native capabilities will expand the company's Total Addressable Market (TAM) to approximately $70 billion. Management is optimistic that this move will further strengthen the technology and footprint of its enterprise network services and provide entry into a high-growth market with a compound annual growth rate of 20%.
The deal's completion is closely tied to Lumen's recently announced first-quarter results. The financial report showed that the company's strategic revenue exceeded 50% of total business revenue for the first time, reaching 51%, which is seen as a significant milestone in its digital transformation. Although the company posted a net loss of $200 million for the first quarter and revenue declined to $2.9 billion, this indicates the company is accelerating its divestiture of legacy businesses and concentrating resources on a long-term transformation centered on AI and enterprise networking. Lumen CFO Chris Stansbury noted during the earnings call that the acquisition "reflects a disciplined and opportunistic capital allocation strategy that supports our goal of returning to revenue growth." He also mentioned that the transaction is expected to be accretive to the company's free cash flow in the first year following its completion.
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