May 21 (Reuters) - AT&T ( T ) has clinched a deal to

acquire Lumen Technologies' ( LUMN ) consumer fiber operations

for $5.75 billion in cash, the companies said on Wednesday, as

the wireless provider adds further scale to its national fiber

footprint.

Lumen's shares were up 13% in after-market trading on the sale

of the business, which provides high-speed internet services to

residential customers.

Buying the unit will gain AT&T ( T ) 1 million fiber customers, as

well as significantly expand its fiber-network operations in

Denver, Las Vegas, Minneapolis-St. Paul, Orlando, Phoenix,

Portland, Salt Lake City and Seattle, according to an AT&T ( T )

statement.

Reuters first reported in December that Lumen was marketing the

business for sale.

The deal allows Lumen to focus on growing the company's

enterprise fiber business, Lumen Chief Financial Officer Chris

Stansbury told Reuters.

It will also allow it to invest in low-latency technology, which

is critical for supporting artificial intelligence workflows, he

said.

"The customers are asking us to go faster, which is really

to deliver their needs in a multi cloud, AI-first world,"

Stansbury said.

The cash proceeds from the sale will help Lumen trim its debt

pile by $4.8 billion and improve cash flow by reducing interest

expenses by more than $300 million annually, he said.

The transaction is expected to close in the first half of

2026. AT&T ( T ) said, once completed, the acquired assets and some

other capabilities will be housed in a new subsidiary, in which

it plans to sell a minority stake.