BOSTON-American Tower Corp. said it signed a definitive agreement with Alltel Corp. to acquire the rights to as many as 2,193 of Alltel’s communications towers through a 15-year sublease for up to $658 million in cash.
American Tower said it has the right of first refusal to provide equipment installation services on the sites. In addition, American Tower also has the option to acquire the rights to 200 additional towers, selected on a site-by-site basis, for a cash consideration of up to $300,000 per tower.
The companies also announced an exclusive build-to-suit agreement that is expected to generate about 500 sites.
The deal is expected to close incrementally beginning in the second quarter.
“As a whole, these towers are well-constructed, high-capacity structures with large compounds,” said Steve Dodge, chairman and chief executive officer of American Tower. “About a third of the ground is owned, providing us with higher operating margins, and revenue shares are very minimal.
“These towers are in growth markets and fit beautifully with our existing footprint,” continued Dodge.
The towers have the equivalent of one broadband tenant per tower, including Alltel as the anchor tenant, said the companies.
The transaction will boost American Tower’s tower count to more than 13,000.
