American Tower to acquire Telxius Towers in €7.7bn transaction

13 January 2021 | Melanie Mingas

American Tower is to acquire Telxius Towers following a deal with its parent company Telefónica, S.A.

The €7.7 billion deal (US$9.4 billion) will secure Telxius' 31,000 existing communication sites and also pave the way for American Tower to spend around $500 million constructing a "committed pipeline" of 3,300 new sites in Germany and Brazil by 2025.

American Tower said it expects the assets to generate approximately $775 million in property revenue, approximately $410 million in gross margin, and approximately $390 million in Adjusted EBITDA at current foreign exchange rates, in their first full year in its portfolio, pro forma for contributions from the committed future build-to-suits.

Confirming the news in a statement today, American Tower CEO, Tom Bartlett (pictured), said: "This transaction is transformational for our European business and will establish American Tower as one of the largest independent communications infrastructure providers in Europe. It is also complementary for our Latin American portfolio and positions us to drive strong long-term organic growth across both regions while augmenting our new build programs and enhancing our relationships with key tenants.

"We are excited to broaden our partnership with Telefónica by acquiring a high-quality, well-located portfolio of sites that will further diversify our global footprint and enhance our ability to help provide broadband connectivity for billions of people."

Bank of America, N.A. BofA Securities, Inc. is serving as American Tower's lead financial advisor, with the firm also being advised by CDX Advisors and EA Markets.