Arch Communications Group Inc. announced it has signed a definitive agreement to sell it site management business-again-this time to OmniAmerica Inc., West Palm Beach, Fla.
The transaction, expected to be completed by the end of June, is valued at $38 million. Under terms of the agreement, Arch will sell about 150 communications towers and tower-management contracts involving 134 sites in 22 states. Arch will lease back space on these towers from OmniAmerica for its paging network.
OmniAmerica recently has been acquiring several tower siting and related companies. It expects to complete a merger with Speciality Teleconstructors sometime this month.
Arch had announced in December its intention to sell the business to Telecom Towers L.L.C. for $40 million but in February terminated the deal, reportedly because Telecom Towers wanted to renegotiate the deal following its own due diligence of the tower assets.
According to Arch, it decided to sell its site-management business because it wanted to focus more on its paging interests. Originally meant to support its own wireless communications network, it became a separate line of business for Arch, with more than 160 third-party tenants.
“As a leading provider of paging services, tower-site management is neither a principal business nor a strategic asset for Arch,” said Edward Baker, Jr., Arch chairman and chief executive officer. “Accordingly, we decided to sell the properties to OmniAmerica … We expect to apply the proceeds of the sale toward reduction of our outstanding bank debt.”
Daniels & Associates of Denver represented Arch in the transaction and OmniAmerica received financial backing form Hicks, Muse, Tate & Furst.
