American Tower Corporation closed the first tranche of its Telxius Towers acquisition, comprised of nearly 20,000 communications sites in Germany and Spain, for total consideration of approximately €6.2 billion (approximately $7.6 billion at current foreign currency exchange rates).
The closing was funded by a combination of cash on hand and borrowings under the Company’s revolving credit facilities and term loans. Approximately 4,000 additional rooftop communications sites in Germany are expected to close in the third quarter of 2021.
Tom Bartlett, American Tower’s Chief Executive Officer stated, “We are excited to close on these high-quality, well-located assets and are ready to quickly and efficiently integrate them into our existing European portfolio. We expect to utilize our newly augmented leadership position in Germany and Spain to drive strong, sustainable, long-term growth while delivering best-in-class service to existing and new tenants as they enhance mobile broadband connectivity for their customers. As one of the largest independent communications infrastructure providers in Europe, we believe we are now optimally positioned to benefit from accelerating 5G deployments across the region through a combination of organic growth, new builds and the potential for selective future acquisitions.”
American Tower to acquire Telxius Towers for €7.7 billion
Telefónica agreed to sell Telxius Towers to American Tower Corporation for approximately €7.7 billion (approximately $9.4 billion at current foreign exchange rates), subject to customary closing adjustments.
The deal consists of approximately 31,000 existing communications sites in Germany, Spain, Brazil, Chile, Peru and Argentina. In addition, American Tower expects to spend approximately $500 million to construct a committed pipeline of approximately 3,300 new sites in Germany and Brazil through 2025.
Following this operation, American Tower becomes Telefónica's leading supplier in both Europe and Latin America and maintains its status as a partner in strategic projects in Brazil, Argentina and Colombia.
