Lumen Acquires Pakistani Startup Alkira for $475M
Lumen Technologies has announced its agreement to acquire Alkira, a Lahore-founded cloud networking startup, in an all-cash deal worth $475 million. The acquisition was revealed on May 5 and aims to combine Lumen’s expansive fiber network with Alkira’s cloud-native software solutions designed for enterprise networking.
Alkira was co-founded in 2018 by Pakistani brothers Amir Khan and Atif Khan. Amir Khan, originally from Lahore, moved to the United States in 1984 and holds a master’s degree in computer engineering from the University of Colorado at Boulder. Prior to founding Alkira, the brothers successfully developed Viptela, a software-defined wide area networking company that Cisco acquired for $610 million in 2017.
The strategic acquisition is expected to advance Lumen’s cloud networking capabilities by integrating Alkira’s technology, which allows enterprises to design, deploy, and operate connectivity across hybrid and multi-cloud environments. Lumen’s CEO, Kate Johnson, highlighted that this acquisition will provide customers with programmable networks tailored for the AI era.
Beyond enhancing technical capabilities, the deal will extend Lumen’s global reach by enabling connectivity across partner networks outside North America. Lumen estimates the expanded addressable market to be approximately $70 billion as a result.
From a financial perspective, Lumen’s Chief Financial Officer, Chris Stansbury, noted that the acquisition reduces the need for future capital expenditure, forecasting an annual reduction in capital spending between $100 million and $200 million post-deal closure. The transaction is anticipated to finalize in the third quarter of 2026, pending regulatory approvals.
Alkira’s platform is recognized for enabling enterprise clients to manage cloud connectivity seamlessly in increasingly complex cloud environments. This complements Lumen’s existing infrastructure, fortifying its position as a leader in digital platform services.
Lumen recently reported a first-quarter revenue of $2.9 billion, surpassing analyst expectations, despite posting a net loss. The acquisition of Alkira is expected to further strengthen the company’s market offering amid growing demand for cloud-based networking solutions.
This deal marks a notable milestone for Pakistani-founded technology ventures and showcases the increasing global influence of Pakistani entrepreneurs in the tech domain.