Towers – Precedent M&A Transactions (2023)

Description

Dgtl Infra provides you comprehensive details for the latest precedent sale (M&A) transactions in the towers sector of digital infrastructure. Acquirors in this report include American Tower, Crown Castle, SBA Communications, Cellnex Telecom, and many more.

This analysis is comprehensive, as shown by the product image. Specifically, this document covers over 140 towers M&A transactions from the United States, Europe, Latin America, Africa, India, Southeast Asia, and Australia. Indeed, this analysis comprises all key towers M&A transactions dating back to 2016, with transaction values of greater than $100 million.

What Transaction Metrics Does Dgtl Infra Cover?

Dgtl Infra includes detail on qualitative factors. These include the acquiror name, target name, seller name, geography of the target, and announcement date of the transaction. Additionally, Dgtl Infra provides key quantitative details pertinent to analyze the transaction. Specifically, these financial metrics include transaction value, EBITDA or Tower Cash Flow of the target, multiple of Enterprise Value-to-EBITDA or Tower Cash Flow, # of towers of the target, and the Enterprise Value-per-Tower.

What Types of Towers Transactions Does Dgtl Infra Cover?

Within these precedent M&A transactions for towers, Dgtl Infra focuses on the sub-sectors of wireless cell towers, TV & radio broadcast towers and mobile sites located on billboards.

Why Are Towers Important?

Towers serve as the core network and the current underpinning of 4G/LTE networks. Further, towers are also central to the performance of 5G networks. Wireless carrier M&A activity helps support rising data usage, technological upgrades, and new spectrum deployment. These wireless carriers lease vertical space on towers so that they, as tenants, can place communications equipment on the tower. Notably, each tower has the capacity to support 4 to 6 of these different tenants.

Overall, towers are characterized by recurring revenue, rental escalators, long-term contracts (initial term of 10+ years), high operating leverage / incremental margins, low maintenance capital expenditures and leases to investment-grade counterparties. Beyond the traditional wireless carriers, our towers scope also extends to companies that lease space on towers to TV and radio broadcasters, public safety, and Internet of Things providers.

Overall, there are 155k+ towers, with 350k+ tenants operating in the United States. This makes the tower sector an incredibly diverse market.