IHS Towers today announced it has acquired Centennial Towers’ 819 towers in Brazil and Colombia. Specifically, this acquisition includes Centennial Towers’ 602 towers in Brazil and 217 towers in Colombia. However, it does not incorporate Centennial Towers’ 750+ towers in Mexico.

Centennial Towers – Overview

Tower Tenants

Centennial Towers leases its 602 towers in Brazil, in-part, to Claro (owned by América Móvil) and Vivo (Telefônica Brasil). Additionally, the company leases its 217 towers in Colombia, in-part, to Tigo (owned by Millicom Corporation).

Financial Sponsors

Centennial Towers was founded in 2007 by the Bettsak family, which invests through Breslau Capital, and is the controlling shareholder of the company. Additionally, Madison Dearborn Partners, a Chicago-based private equity firm, invested in Centennial Towers in June 2014, through its Growth Equity strategy.

IHS Towers – Portfolio Including Centennial Towers

At year-end 2020, IHS Towers’ total portfolio comprised 27.8k owned and managed towers. Therefore, following the completion of the Centennial Towers acquisition, IHS Towers’ total portfolio will grow to 28.6k owned and managed towers.

Overall, the companies top five markets by tower count will be Nigeria (16.5k towers), Brazil (2.9k towers), Côte d’Ivoire (2.7k towers), Cameroon (2.2k towers), and Zambia (1.8k towers). Notably, IHS Towers had a de minimis presence in Colombia prior to the acquisition of Centennial Towers’ sites.

IHS Holding – Brazil Expansion

IHS Towers’ parent company, IHS Holding, has been rapidly expanding its digital infrastructure portfolio in Brazil. This expansion effort includes two recent M&A announcements in the country: Skysites Holdings and TIM SA’s FiberCo.

Skysites Holdings

Firstly, IHS Towers’ acquisition of Centennial Towers closely follows its purchase of Skysites Holdings, in January 2021. Specifically, Skysites is a provider of small cells and urban telecommunications infrastructure in Brazil, owning 1.0k sites.

Notably, Centennial Towers has also built small cells and distributed antenna systems (DAS) in Brazil. Indeed, this will complement the Skysites business and provide IHS Towers with additional mobile infrastructure scale in the country.

FiberCo Soluções de Infraestrutura Ltda (FiberCo)

Secondly, in March 2021, IHS Brasil Participações Ltda (IHS) entered into an exclusivity agreement with TIM SA, a wireless carrier in Brazil, to acquire an equity interest in the company’s fiber broadband business, known as FiberCo.

FiberCo will accelerate TIM SA’s fiber infrastructure coverage, which in turn, will grow its residential broadband business. By 2022, the company intends to pass 5.5 million homes with fiber, a 72% increase from current levels.

Adam Simmons is the Founder & CEO of Dgtl Infra. He started his career with an S&P 500-listed big box retailer, in an operations management role. Adam's entrepreneurial "itch" led him to start a 5G-driven company, focused on innovative retail solutions using augmented reality and shoppable videos, which was eventually sold to an advertising and consulting group. After, realizing the potential of 5G, Adam shifted his efforts towards investing in the "building blocks" of 5G - known as digital infrastructure, completing a number of strategic investments, buying cellular towers, data centers and fiber networks.

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