American Tower (NYSE: AMT ) today announced a deal to purchase MIP Tower Holdings for $3.3 billion in cash. MIP is a private real estate investment trust that is the parent company of Global Tower Partners.
In addition to the cash for the acquisition, American Tower will also assume about $1.5 billion in existing debt. With the purchase, the company will add about 5,400 U.S. towers, 800 domestic property interests under third-party communication sites, and management rights to more than 9,000 domestic sites, primarily rooftop assets. GTP also owns 500 communications sites in Costa Rica.
American Tower currently owns and operates more than 56,000 communications sites in the United States, Brazil, Chile, Colombia, Germany, Ghana, India, Mexico, Peru, South Africa, and Uganda.
American Tower President and CEO Jim Taiclet said in a statement that "GTP's towers boast a high quality customer base, a strong position with respect to ground ownership and lease terms, and additional structural capacity available to facilitate future leasing activity."
American Tower said that with the four major U.S. wireless carriers aggressively pursing 4G LTE, the Global Towers assets will help the company reach its adjusted funds from operations goals over the next five years.
In its press release, the company said it expects that in aggregate, in 2014, the GTP acquisition portfolio will bring in approximately $345 million in revenues and approximately $270 million of gross margin. The acquisition is expected to increase adjusted funds from operations once the deal closes.
The transaction is expected to close in the fourth quarter.