Verizon agrees to US$3.3 billion towers deal with Vertical Bridge
VERIZON Communications, the biggest wireless carrier in the US, is in advanced talks to sell thousands of mobile phone towers to digital infrastructure firm Vertical Bridge, people familiar with the matter said.
The transaction could value the 6,339 towers at about US$3.3 billion and be announced as soon as Monday, the people said, asking not to be identified because the details are private.
Under terms being discussed, Verizon would enter into a 10-year agreement to lease back capacity on the towers, which are located in all 50 states and Washington, DC, from Vertical Bridge, according to the people. Verizon could have an option to extend the term up to 50 years, they said.
Representatives for Verizon and Vertical Bridge declined to comment.
Bloomberg News reported in July that Verizon was exploring a sale of the towers and that the assets could draw interest from infrastructure firms.
Telecom giants have from time to time turned to their mobile-phone towers as a way to raise cash. Verizon agreed in September to acquire Frontier Communications Parent in a deal valued at US$20 billion including debt.
Founded in 2014, Vertical Bridge is a private owner and operator of communications infrastructure and locations in the US. Its portfolio of over 500,000 sites includes more than 11,000 owned and master-leased towers. BLOOMBERG
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