Lumen Technologies Inc ( LUMN ) shares are soaring in Wednesday’s after-hours session after the company announced the sale of its consumer fiber-to-the-home business to AT&T Inc .

What Happened: Lumen entered into a definitive agreement with AT&T ( T ) to sell its mass market fiber-to-the-home business in 11 states for $5.75 billion in cash. The deal includes approximately 95% of Quantum Fiber, approximately four million enablements and close to one million subscribers. The company said it marks another step in Lumen’s transition to an enterprise digital networking company.

“We are sharpening our focus on enterprise customers, and this transaction enhances our financial flexibility, enabling us to reimagine networking for enterprises in a multi-cloud, AI-first world,” said Kate Johnson, president and CEO of Lumen.

“As part of this deal, we are retaining the core infrastructure that allows us to continue innovating for enterprise customers, leapfrogging traditional networking architectures to give customers the bandwidth, performance, and security they need.”

Lumen said it expects to build out new fiber enablements through the end of 2025 at a similar pace to 2024. The company will retain all national, regional-, state- and metro-level fiber backbone network infrastructure, central offices and associated real estate. These assets will continue to serve as the foundation of the company’s enterprise transformation.

The transaction is expected to close in the first half of 2026. Upon closing, Lumen intends to use net proceeds of approximately $4.2 billion to pay down debt.

Lumen shares surged on the news. AT&T ( T ) shares were also up about 0.25% in after-hours at last check.

LUMN Price Action: Lumen Technologies ( LUMN ) shares were up 14.96% in after-hours Wednesday, trading at $4.38 at the time of publication, according to Benzinga Pro.

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