Lumen Technologies Inc. plans to sell a broad swath of its U.S. telecommunications network to Apollo Global Management Inc. for $7.5 billion including debt, officials from the companies said.

The investment giant will carve out some of Lumen’s
LUMN,
+1.67%

so-called incumbent local exchange carrier assets, a collection of telephone and broadband infrastructure that covers 6 million residential and business customers across 20 states, mostly in the U.S. Midwest and Southeast. The deal value includes $1.4 billion of assumed debt.

Lumen’s remaining operations will focus on large business clients, who generate most of its revenue, as well as home-broadband subscribers in 16 states including Colorado, Florida and Washington.

The new Apollo
APO,
+2.47%

-backed company, which aims to accelerate the business’s shift from older copper lines to high-speed fiber-optic technology, will be led by Verizon Communications Inc.
VZ,
-0.05%

 veterans Bob Mudge, Chris Creager and Tom Maguire, who together built out Verizon’s fiber-based, Fios service.

An expanded version of this report appears on WSJ.com.

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