SBA Communications Corp. said it will acquire tower company Optasite Holding Company Inc. in a stock-and-cash deal worth roughly $430 million.
SBA, which owns and operates towers for AT&T Mobility and Verizon Wireless, said it will issue Optasite sellers 7.25 million shares of SBA common stock and will assume the company’s fully drawn $150 million credit facility. SBA also plans to absorb $25 million in additional liabilities from Optasite and will pay the cash portion of the deal with existing funds.
The deal is expected to close by the end of September, SBA said, and Optasite is expected to own 548 tower sites in 31 states by that time. SBA is the No. 4 tower company in the United States; Optasite is No. 7 and will be generating $29 to $30 million in annualized site-leasing revenue when the transaction closes.
Shares of SBA bounced 82 cents to $35.65 following news of the agreement before settling at $35.11 by mid-day.
SBA nabs Optasite for towers
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