American Tower Buying InSite Wireless for $3.5B
American Tower agreed to buy InSite Wireless Group, which owns and operates some 3,000 communications sites, mostly in the U.S. and Canada, for $3.5 billion, American Tower said Thursday. It adds to “our foundational U.S. business through the addition of…
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a well-run, high-quality, complementary, macro-tower focused portfolio, while also marking our entry into Canada,” said CEO Tom Bartlett. InSite has 1,400 towers in the U.S., more than 200 in Canada and about 70 distributed antenna system networks in the U.S., the company said. “The purchase multiple of 30x tower cash flow is high relative to historical US tower deals” but is expected to immediately add to earnings, New Street’s Spencer Kurn told investors. “The relative underexposure of InSite to the big three wireless carriers should yield faster growth on their portfolio relative to [American Tower’s] existing US towers,” he said. “We like the deal, accretive on day 1, bolstering [American Tower’s] position in the early innings of 5G cycle,” Credit Suisse said.