In a landmark deal, Verizon Communications is set to offload a substantial portion of its mobile phone tower assets to Vertical Bridge, a leading digital infrastructure firm, in a transaction valued at $3.3 billion. The agreement, which covers a vast network of 6,339 towers spanning all 50 states and Washington D.C., will provide Verizon with a significant influx of capital to invest in its wireless network.
Under the terms of the deal, Vertical Bridge will pay $2.8 billion upfront, with Verizon retaining the right to lease back the towers for an initial period of 10 years, extendable up to 50 years. The sale is expected to be finalized by the end of 2024, marking a significant milestone in Verizon’s efforts to reduce its tower-related expenditures.
Industry experts view this move as part of a broader trend, where wireless operators are increasingly divesting their owned and operated towers to independent operators. This shift allows for more efficient management of tower resources, enabling multiple tenants to share the same infrastructure.
Vertical Bridge, which boasts an impressive portfolio of over 500,000 sites across the U.S., including wireless and broadcast towers, has existing partnerships with major players such as AT&T and T-Mobile US. The company’s Vice Chairman, Marc Ganzi, expressed enthusiasm about the deal, citing the growing demand for wireless infrastructure driven by emerging technologies like AI and 5G.
To support the transaction, asset manager DigitalBridge, the majority owner of Vertical Bridge, and Canada’s CDPQ pension fund will provide the necessary capital. This deal follows Verizon’s recent announcement to acquire fiber-optic internet provider Frontier Communications in an all-cash deal worth $20 billion.
J.P. Morgan and Centerview Partners LLC served as financial advisers to Verizon and Vertical Bridge, respectively, while Jones Day and Greenberg Traurig provided legal counsel to the firms.
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