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Verizon to sell mobile towers to infra firm Vertical Bridge in $3.3 bn deal

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Verizon to sell mobile towers to infra firm Vertical Bridge in .3 bn deal

The sale is expected to close by the end of 2024 and would aid Verizon’s efforts to drive down tower-related costs. | Image: Wikimedia Commons

2 min read Last Updated : Sep 30 2024 | 6:55 PM IST


Verizon Communications will sell thousands of mobile phone towers to digital infrastructure firm Vertical Bridge in a $3.3 billion deal, it said on Monday, unlocking more cash for the dominant US wireless carrier to bolster its network.

 


The deal, covering 6,339 towers across all 50 US states and Washington D.C., includes upfront cash proceeds of $2.8 billion. The towers will be leased back to Verizon for 10 years, with an option to extend the term up to 50 years.

 

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The sale is expected to close by the end of 2024 and would aid Verizon’s efforts to drive down tower-related costs.

 

 


The wireless carrier already has a tie-up with Vertical Bridge, under which the infrastructure firm plans to construct towers with Verizon as the anchor tenant.

 


Vertical Bridge, which operates as a real estate investment trust, has more than 500,000 sites in the US that includes wireless and broadcast towers. It also has partnerships with companies including AT&T and T-Mobile US.

 


“(This deal) positions us to capitalize on the growing demand for wireless infrastructure, especially as AI-driven technologies and 5G continue to reshape connectivity needs across industries,” Vertical Bridge Vice Chairman Marc Ganzi said.

 


DigitalBridge, a digital-focused asset manager and majority owner of Vertical Bridge, along with investment group CDPQ, have committed to provide capital to support the transaction.

 


Verizon had said earlier this month it would buy fiber-optic internet provider Frontier Communications in an all-cash deal worth $20 billion.

 

J.P. Morgan is the financial adviser to Verizon and Jones Day is the legal counsel. Centerview Partners LLC is the financial adviser to Vertical Bridge and Greenberg Traurig the legal counsel.


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sep 30 2024 | 6:55 PM IST

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