American Tower Corporation has entered into a definitive agreement to acquire Eaton Towers, which owns and operates approximately 5,500 communications sites across five African markets.
The deal will enable American Tower to accelerate new build activity across the region via expanded relationships with multiple key tenants. It will assume Eaton Towers’ existing debt, making the total consideration for the transaction approximately $1.85 billion subject to customary closing adjustments.
Jim Taiclet, American Tower’s Chief Executive Officer said: “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.”
The assets are expected to generate approximately $260 million in property revenue and approximately $165 million in gross margin, at current exchange rates, in their first full year in American Tower’s portfolio. The transaction is anticipated to be immediately accretive to Consolidated AFFO per Share and is expected to close by the end of 2019, subject to customary closing conditions and regulatory approvals.