BOCA RATON, Fla.-SBA Communications Corp. entered a definitive agreement to acquire 56 wireless towers from Horizon Telecom Inc.
The agreement also calls for SBA to provide exclusive site acquisition, development, collocation, build-to-suit and equipment installation services in selected regions for Horizon Personal Communications and its affiliates.
SBA will pay $16.6 million for the towers, which are located in Ohio, Kentucky and West Virginia. Horizon will lease back space on the towers under a 10-year lease with initial rent set at $1,800 per month.
In other news, SBA reported revenues for the second quarter increased 40.9 percent to $19.4 million, compared with revenues of $13.8 million for the second quarter of 1998. The company attributed the increase to higher site-leasing and site-development revenues.
The net loss for second quarter totaled $8.7 million, or 64 cents per share, compared with a net loss of $6.1 million, or 82 cents per share, for the same quarter last year.
During the quarter, SBA completed its initial public offering of class A common stock and acquired Com-Net Construction Services Inc. The company also added 184 towers to its portfolio during the quarter, including 126 that it built. The company owns a total of 770 towers.
