American Tower is set to acquire Eaton Towers, which has presence across five African markets, in a deal valued at approximately $1.85 billion.
Eaton Towers owns and operates approximately 5,500 communications sites across five African markets.
American Tower expects to accelerate expansion in the Africa telecom market due to expanded relationships with multiple key tenants.
“This transaction will significantly augment our existing footprint in Africa and positions ATC to take better advantage of the growth opportunity in 4G mobile data market,” Jim Taiclet, chief executive officer of American Tower, said.
The telecom tower business of Eaton Towers is expected to generate approximately $260 million in property revenue and approximately $165 million in gross margin in their first full year in American Tower’s portfolio.
American Tower said the telecom tower deal is expected to be accretive to consolidated AFFO per share and is expected to close by the end of 2019.