Telxius acquires 1,909 Brazilian tower sites for $150m
Telxius has struck a deal with Telefónica Brasil (Vivo) for the acquisition of 1,909 sites in Brazil for R$ 641 million ($153 million).
Under the terms of the agreement, Telxius will double its existing portfolio bringing it to a total of 3,850 sites and reinforcing its position as a one of the biggest infrastructure operators in the country.
The deal, which is subject to approvals from the antitrust authority, totals R$ 641 million and will be financed in cash.
The acquired assets have a fundamentally urban profile amounting to 82% of the total. 52% of the acquired towers are located in Brazil’s main cities, São Paulo and Rio de Janeiro. It will allow Telxius to significantly strengthen its presence in Brazil’s urban areas, where mobile operators are likely to concentrate their efforts to improve mobile broadband coverage and future 5G deployment.
“The quality of the acquired assets, with a high presence in São Paulo and Rio de Janeiro, and the resulting size of our operations in the market, provides us with an excellent platform in Brazil, a market which presents one of the highest growth expectations in telecommunications infrastructure globally,” said Mario Martín, CEO of Telxius. “This transaction complements our recent reinforcement of our leadership position in Spain and Peru and the strengthening of our operations in Chile, all executed this year.”
Earlier this year, Telxius launched its purpose-built, interconnection-rich, Derio Communications hub. Situated a few kilometres away from the landing station for the MAREA cable ait has been developed in response to the growing demand from communication services.
in related news, Telefónica announced the launch of Telefónica infra, a new unit that will encompass the company’s existing stakes in telecommunications infrastructure vehicles. It will leverage the strength of Telxius and which Telefónica has a 50.01% stake in, as the first asset of this new unit. It will develop towers, distributed antenna systems, data centres (including Edge), greenfield fibre projects and subsea cables, to name a few.