Shopping spree continues: SBA snaps up Light Tower Wireless

SBA Communications Corp. is in the mood to shop. The company announced today it will acquire Light Tower Wireless L.L.C., the wireless infrastructure branch of Light Tower L.L.C. The purchase comes with Light Tower’s 340 tower sites in 23 states, five managed sites and five distributed antenna system networks.
SBA will purchase Light Tower Wireless for roughly $200 million in cash, plus 1.15 million shares of SBA Class A common stock. However, if Light Tower forgoes the stock option, SBA will pay $240 million in total cash value. SBA said the funds will come from existing cash resources and a draw into its $335 million senior credit facility. SBA expects this deal to close at the end of October, one month after it hopes its $430 million purchase of Optasite – announced yesterday – will close.
Optasite is projected to own 548 towers sites in 38 states on the close of SBA’s purchase of the company, which means SBA will be gaining a total of 888 new towers by the end of the year through its two acquisitions.
Light Tower Wireless is expected to be generating up to $19 million of annualized site leasing revenue and up to $14 million of annualized tower cash flow by the time the deal is expected to close.