Towerco M&A unveils transformative growth strategies
Deal News | Feb 05, 2025 | EIN
The tower company (towerco) sector has experienced a significant transformation through mergers and acquisitions (M&A) since 2019, culminating in a peak with US$10.17 billion worth of deals in 2022. M&A has enabled towercos to expand transnationally without heavy infrastructure investments, diversify revenue streams, and optimize operations by modernizing technology infrastructures. The article highlights notable acquisitions such as STC's purchase of passive sites in Eastern Europe and Everest Infrastructure Partners' entry into Europe through Blue Sites Telco. Mobile Network Operators have also strategically offloaded towers to unlock capital, exemplified by NTT Docomo's asset sale to JTower. While this trend offers scalable growth opportunities, it introduces challenges, emphasizing the necessity for strong financial management and consolidated reporting to achieve desired synergies and continued growth. Utilizing Enterprise Resource Planning (ERP) systems is crucial during integration processes to enhance operational efficiencies and financial transparency, facilitating optimal acquisition strategies and future expansions.
Sectors
- Telecommunications
- Financial Services
Geography
- Global – The article covers M&A activities in the towerco sector across various global regions including Europe, North America, and Asia.
- Europe – Specific focus on European transactions such as STC's acquisition of sites in Bulgaria, Croatia, and Slovenia, and Everest Infrastructure Partners entering the European market.
- North America – Involves North American company Everest Infrastructure Partners in European expansion and mentions Canadian Brookfield Asset Management's acquisition.
- Asia – Highlights activity in the Asian market with NTT Docomo's asset sale to JTower, and references to Indian operations involving American Tower Corporation.
Industry
- Telecommunications – The article focuses on the tower company sector within the telecommunications industry, discussing how M&A activities have impacted towercos.
- Financial Services – The financial strategies and structuring surrounding M&A transactions and the integration of financial operations are a focal point in the article.
Financials
- US$10.17 billion – Total value of 38 M&A transactions in the tower sector for 2022.
- $2.5 billion – Amount paid by Brookfield Asset Management for ATC's Indian operations.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Saudi Telecom Company (STC) | Acquirer | Company | Acquired United Group's passive sites in Bulgaria, Croatia, and Slovenia. |
| United Group | Target | Company | Owner of passive sites acquired by STC in Europe. |
| Everest Infrastructure Partners | Acquirer | Company | US-based towerco that entered the European market by acquiring Portuguese company Blue Sites Telco. |
| Blue Sites Telco | Target | Company | Portuguese towerco acquired by Everest Infrastructure Partners. |
| NTT Docomo | Seller | Company | Japanese MNO that sold towers to JTower in September 2023. |
| JTower | Buyer | Company | Acquired 1,553 towers from NTT Docomo. |
| Brookfield Asset Management | Acquirer | Company | Canadian investment firm that acquired American Tower Corporation's Indian operations. |
| American Tower Corporation (ATC) | Seller | Company | Sold its Indian operations to Brookfield Asset Management. |
| America Movil | Seller | Company | Spun off its tower subsidiary Sitios Latinoamerica as part of a divestment strategy. |
| Dayamitra Telekomunisikasi | Acquirer | Company | Acquired 803 towers in Indonesia to expand market share. |