SARASOTA, Fla.-Pinnacle Holdings Inc. entered an agreement to acquire a collocation facility in Dallas for $136 million, the company said.
The Univision Center Building houses numerous large anchor telecom tenants and has capacity to add new ones, said Pinnacle. Collocation facilities have similar characteristics to towers, including high margins, high growth and low churn, making them an additional business opportunity for Pinnacle.
“Once a tenant installs switching equipment and related computer systems, the chances of them moving are slim,” said Jeff Card, chief financial officer of Pinnacle. “We like this business and will continue to aggressively acquire these types of assets.”
The company said it also entered a joint venture to develop an additional facility in Dallas for $15 million.
In other news, Pinnacle announced it intends to issue a public offering of 8 million shares of its common stock. The net proceeds will be used to purchase pending acquisitions, fund future acquisition and for general corporate purposes.
