American Tower Corporation (ATC) has announced that it has entered into a definitive agreement to acquire Eaton Towers Holding Limited, which owns and operates approximately 5,500 communications sites across five African markets.
ATC said in a statement that the deal, worth $1.85bn, would allow it to accelerate new build activity in Nigeria and other African countries as relationship would be made with key tenants.
The company said it was expected to generate an estimated $260m in property revenue from the acquired assets and about $165m in gross margin, at current exchange rates, in their first full year in American Tower’s portfolio.
“The total consideration for the transaction, including the company’s assumption of existing Eaton Towers’ debt, is approximately $1.85bn, subject to customary closing adjustments,” ATC added.
Jim Taiclet, American Tower’s chief executive officer, stated, “This transaction will significantly augment our existing footprint in Africa and positions ATC to take even better advantage of the growth opportunity in the region as 4G mobile data technology is deployed to serve millions of Africans over the coming years.”
ATC, which has more than 170,000 in Nigerian and 16 other countries, said the transaction was expected to be concluded by the end of the year and subject to customary closing conditions and regulatory approvals.