Verizon and Vertical Bridge agree to $3.3 billion tower transaction
Verizon Communications Inc. (NYSE, Nasdaq: VZ) and Vertical Bridge have announced a $3.3 billion tower transaction. Vertical Bridge will obtain exclusive rights to lease, operate, and manage 6,339 wireless communications towers across all 50 states and Washington, D.C. from Verizon subsidiaries. The deal includes:
- A prepaid lease with upfront proceeds of approximately $2.8 billion in cash
- A 10-year leaseback agreement for Verizon to use tower capacity
- Options to extend the lease term up to 50 years
- Access for Verizon to additional tower space for future use
This agreement aims to help Verizon reduce tower-related costs and increase vendor diversity. The transaction is expected to close by the end of 2024, subject to customary closing conditions.
Verizon Communications Inc. (NYSE, Nasdaq: VZ) e Vertical Bridge hanno annunciato una transazione di torri del valore di 3,3 miliardi di dollari. Vertical Bridge otterrà diritti esclusivi per affittare, gestire e operare 6.339 torri di comunicazione wireless in tutti e 50 gli stati e a Washington, D.C. dalle filiali di Verizon. L'accordo include:
- Un contratto di locazione prepagato con proventi iniziali di circa 2,8 miliardi di dollari in contanti
- Un contratto di leaseback di 10 anni per permettere a Verizon di utilizzare la capacità delle torri
- Opzioni per estendere la durata del contratto fino a 50 anni
- Accesso per Verizon a ulteriore spazio per torri per utilizzi futuri
Questo accordo mira ad aiutare Verizon a ridurre i costi relativi alle torri e aumentare la diversità dei fornitori. La transazione dovrebbe chiudersi entro la fine del 2024, soggetta a condizioni di chiusura consuete.
Verizon Communications Inc. (NYSE, Nasdaq: VZ) y Vertical Bridge han anunciado una transacción de torres de 3.3 mil millones de dólares. Vertical Bridge obtendrá derechos exclusivos para arrendar, operar y gestionar 6,339 torres de comunicaciones inalámbricas en todos los 50 estados y Washington, D.C., de filiales de Verizon. El acuerdo incluye:
- Un arrendamiento prepagado con ingresos iniciales de aproximadamente 2.8 mil millones de dólares en efectivo
- Un contrato de arrendamiento de 10 años para que Verizon use la capacidad de las torres
- Opciones para extender el plazo de arrendamiento hasta 50 años
- Acceso de Verizon a espacio adicional de torres para futuros usos
Este acuerdo tiene como objetivo ayudar a Verizon a reducir costos relacionados con torres y aumentar la diversidad de proveedores. Se espera que la transacción se cierre a finales de 2024, sujeta a condiciones de cierre habituales.
베라이즌 커뮤니케이션스 Inc.(NYSE, Nasdaq: VZ)와 버티컬 브릿지가 33억 달러 규모의 타워 거래를 발표했습니다. 버티컬 브릿지는 베라이즌 자회사로부터 미국 전역의 6,339개의 무선 통신 타워를 임대, 운영 및 관리할 독점 권리를 확보하게 됩니다. 이 거래에는 다음이 포함됩니다:
- 약 28억 달러의 현금을 포함한 선불 임대
- 베라이즌이 타워 용량을 사용할 수 있는 10년 임대 계약
- 임대 기간을 최대 50년까지 연장할 수 있는 옵션
- 베라이즌이 향후 사용할 수 있는 추가 타워 공간에 대한 접근
이 계약은 베라이즌이 타워 관련 비용을 줄이고 공급업체 다양성을 높이는 데 도움을 주는 것을 목표로 하고 있습니다. 이 거래는 통상적인 마감 조건에 따라 2024년 말까지 마감될 것으로 예상됩니다.
Verizon Communications Inc. (NYSE, Nasdaq: VZ) et Vertical Bridge ont annoncé une transaction de tours d'une valeur de 3,3 milliards de dollars. Vertical Bridge obtiendra des droits exclusifs pour louer, exploiter et gérer 6 339 tours de communication sans fil dans les 50 États et à Washington, D.C. auprès des filiales de Verizon. L'accord comprend :
- Un bail prépayé avec des revenus initiaux d'environ 2,8 milliards de dollars en espèces
- Un contrat de location de 10 ans pour que Verizon utilise la capacité des tours
- Des options pour prolonger la durée du bail jusqu'à 50 ans
- Accès par Verizon à un espace supplémentaire pour les tours pour une utilisation future
Cet accord vise à aider Verizon à réduire les coûts liés aux tours et à accroître la diversité des fournisseurs. La transaction devrait être finalisée d'ici la fin de 2024, sous réserve des conditions habituelles de clôture.
Verizon Communications Inc. (NYSE, Nasdaq: VZ) und Vertical Bridge haben eine Turmtransaktion im Wert von 3,3 Milliarden Dollar angekündigt. Vertical Bridge wird exklusive Rechte erwerben, um 6.339 drahtlose Kommunikationstürme in allen 50 Bundesstaaten und Washington, D.C. von Tochtergesellschaften von Verizon zu mieten, zu betreiben und zu verwalten. Der Vertrag umfasst:
- Ein vorausbezahltes Mietverhältnis mit Vorauszahlungen von etwa 2,8 Milliarden Dollar in bar
- Eine 10-jährige Rückmietvereinbarung für Verizon zur Nutzung der Turkkapazität
- Optionen zur Verlängerung der Mietdauer von bis zu 50 Jahren
- Zugriff für Verizon auf zusätzlichen Platz für Türme für zukünftige Nutzung
Diese Vereinbarung soll Verizon helfen, die turmbezogenen Kosten zu senken und die Vielfalt der Anbieter zu erhöhen. Mit dem Abschluss der Transaktion wird bis Ende 2024 gerechnet, vorbehaltlich der üblichen Abschlussbedingungen.
- Verizon to receive $2.8 billion in upfront cash proceeds
- Potential for reduced tower-related costs for Verizon
- Increased vendor diversity in a concentrated industry
- Verizon retains access to tower capacity with a 10-year leaseback agreement
- Options to extend lease term up to 50 years
- Verizon divests control of 6,339 wireless communications towers
Insights
This $3.3 billion tower transaction between Verizon and Vertical Bridge is a significant move in the telecommunications infrastructure space. The deal involves Vertical Bridge obtaining exclusive rights to lease, operate and manage 6,339 wireless communications towers across the U.S. from Verizon.
Key financial aspects include:
- Upfront cash proceeds of
$2.8 billion for Verizon - A 10-year leaseback agreement with potential extensions up to 50 years
- Verizon retaining access to additional tower space for future use
This transaction allows Verizon to monetize its tower assets while maintaining operational control. It provides Verizon with increased financial flexibility to invest in its core business, return value to shareholders and potentially reduce tower-related costs. For Vertical Bridge, this deal significantly expands its tower portfolio, enhancing its position in the U.S. tower market.
The involvement of DigitalBridge and CDPQ as capital providers underscores the attractiveness of digital infrastructure assets to institutional investors. This deal could potentially trigger further consolidation or similar transactions in the tower sector.
This transaction marks a significant shift in Verizon's infrastructure strategy, aligning with industry trends of major carriers divesting tower assets to specialized infrastructure companies. The deal offers several strategic benefits:
- Operational efficiency: Verizon can focus on its core network services while leveraging Vertical Bridge's expertise in tower management.
- Financial flexibility: The
$2.8 billion cash injection provides Verizon with capital for network improvements, particularly in 5G expansion. - Cost optimization: The long-term leaseback agreement, coupled with the existing build-to-suit joint venture, may help Verizon reduce tower-related expenses over time.
- Vendor diversification: This move increases competition in the tower leasing market, potentially leading to more favorable terms for carriers.
For the broader telecom industry, this deal could catalyze similar transactions, potentially reshaping the tower ownership landscape. It also highlights the growing importance of specialized infrastructure companies in supporting the rapid evolution of wireless networks.
NEW YORK and BOCA RATON, Fla., Sept. 30, 2024 (GLOBE NEWSWIRE) -- Verizon Communications Inc. (NYSE, Nasdaq: VZ) and Vertical Bridge today announced they have entered into a definitive agreement for Vertical Bridge to obtain the exclusive rights to lease, operate and manage 6,339 wireless communications towers across all 50 states and Washington, D.C. from subsidiaries of Verizon for approximately
Under the terms, Verizon will enter into a 10-year agreement1 to lease back capacity on the towers from Vertical Bridge, serving as the anchor tenant, with options that could extend the lease term up to 50 years. Verizon will also have access to certain additional space on the towers for its future use, subject to certain restrictions. This agreement, along with Verizon’s existing build-to-suit joint venture with Vertical Bridge, will support Verizon’s efforts to drive down tower-related costs and provide greater vendor diversity in a concentrated industry.
“As the nation’s largest mobility provider, we are well positioned with greater financial flexibility to invest in our business, return value to our shareholders and make the nation’s best network even better for customers,” said Verizon Chairman and CEO Hans Vestberg. “This transaction builds on our existing relationship with Vertical Bridge while realizing substantial value for this unique set of assets and allows us to be agile in optimizing the network with one of the best operating partners.”
"We are pleased to have been selected by Verizon as the counterparty in the largest US tower transaction in almost a decade," said Ron Bizick, President and CEO of Vertical Bridge. "This transaction represents a significant step for Vertical Bridge. The vision of the company founders 10 years ago was to create a permanent, private, and at-scale US tower company. This transaction marks a significant milestone in the realization of that vision. Upon the completion of this transaction, these assets, together with our existing portfolio which includes thousands of young, purpose-built towers, enhance Vertical Bridge’s position as a fast, friendly, and flexible colocation partner to the wireless industry.”
“Since co-founding Vertical Bridge in 2014, we’ve been on a transformative journey, and this landmark transaction with Verizon Communications marks an inflection point in that evolution,” said Marc Ganzi, CEO of DigitalBridge and Vice Chairman of Vertical Bridge. “This transaction not only solidifies our leadership in the tower space but also strategically positions us to capitalize on the growing demand for wireless infrastructure, especially as AI-driven technologies and 5G continue to reshape connectivity needs across industries.”
DigitalBridge, a leading global alternative asset manager dedicated to investing in digital infrastructure and majority owner of Vertical Bridge, has committed capital to support the transaction.
CDPQ, a global investment group and an important shareholder of Vertical Bridge since 2019, also committed capital to finance this transaction.
The transaction is expected to close by the end of 2024, subject to customary closing conditions.
Advisors
J.P. Morgan acted as financial advisor to Verizon and Jones Day acted as legal counsel. Centerview Partners LLC served as financial advisor to Vertical Bridge and Greenberg Traurig acted as legal counsel. Simpson Thacher & Bartlett acted as legal counsel to DigitalBridge. Mayer Brown LLP acted as legal counsel to CDPQ.
About Verizon
Verizon Communications Inc. (NYSE, Nasdaq: VZ) powers and empowers how its millions of customers live, work and play, delivering on their demand for mobility, reliable network connectivity and security. Headquartered in New York City, serving countries worldwide and nearly all of the Fortune 500, Verizon generated revenues of
About Vertical Bridge
Vertical Bridge REIT, LLC, headquartered in Boca Raton, Florida, was founded in 2014 and is the largest private owner and operator of communications infrastructure and locations in the United States, with a portfolio of more than 500,000 sites, including over 11,000 owned and master-leased towers pre-transaction. Vertical Bridge provides build-to-suit and colocation solutions to the wireless industry. The Company’s portfolio spreads across all 50 states and Puerto Rico.
In 2020, Vertical Bridge became the first tower company in the world to achieve the CarbonNeutral® company certified status and has been recertified every year since. For more information, please visit www.verticalbridge.com.
Forward-Looking Statements
In this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words "anticipates," "assumes," "believes," "estimates," "expects," "forecasts," "hopes," "intends," "plans," "targets" or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
Media contacts:
Katie Magnotta
katie.magnotta@verizon.com
201-602-9235
Blair Crawford
Blair.Crawford@verticalbridge.com
209-482-2030
[1] Initial term of 10 years, plus 8 optional renewal terms of 5 years each, subject to certain early termination rights.
FAQ
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