Verizon Communications and Vertical Bridge have reached a definitive agreement in a landmark deal valued at approximately $3.3 billion. The transaction grants Vertical Bridge the exclusive rights to lease, operate, and manage 6,339 wireless communication towers owned by Verizon subsidiaries, spanning all 50 U.S. states and Washington, D.C. The deal is structured as a prepaid lease, providing Verizon with upfront cash proceeds of around $2.8 billion.
Under the terms of the agreement, Verizon will lease back space on the towers as an anchor tenant through a 10-year agreement with the possibility of extending the lease for up to 50 years. This arrangement also includes provisions for Verizon to access additional tower space in the future, within certain limitations, to accommodate its expanding network needs. This strategic collaboration is expected to help Verizon reduce tower-related expenses and diversify its vendor base in a sector where suppliers are limited. Notably, Verizon already has an existing build-to-suit joint venture with Vertical Bridge, further solidifying their business relationship.
Hans Vestberg, Chairman and CEO of Verizon, emphasized the significance of the deal for the company’s future growth. “As the country’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 Mr. Vestberg. He noted that the transaction allows Verizon to unlock significant value from its infrastructure assets while optimizing its network through a strengthened partnership with Vertical Bridge.
AI-driven Technologies and 5G
For Vertical Bridge, the acquisition marks a major milestone. The company’s President and CEO, Ron Bizick, described the deal as the largest U.S. tower transaction in nearly a decade. “This purchase is a big step forward for Vertical Bridge,” said Mr. Bizick. “The founders of the corporation had the goal of establishing a permanent, private, and large-scale U.S. tower company ten years ago. This acquisition is an important step toward realizing that vision.” Bizick also highlighted that the added assets would bolster Vertical Bridge’s position as a flexible colocation partner in the wireless sector.
Marc Ganzi, CEO of DigitalBridge and Vice Chairman of Vertical Bridge, echoed this sentiment. He noted that the acquisition represents a pivotal moment in the company’s growth since its founding in 2014. “With AI-driven technologies and 5G continuing to reshape connectivity needs across industries, 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,” Ganzi said.
DigitalBridge, the largest stakeholder in Vertical Bridge, is a global alternative asset manager specializing in digital infrastructure investments. The firm has committed funds to support this transaction, further cementing its involvement in the rapidly evolving wireless infrastructure space. Additionally, global investment firm CDPQ, a significant stakeholder in Vertical Bridge since 2019, is also providing financial backing for the deal.
The transaction is expected to close by the end of 2024, pending customary closing conditions. Upon completion, the deal is set to enhance Vertical Bridge’s extensive portfolio of modern towers, positioning it as a key player in the U.S. wireless infrastructure market.
In terms of advisory roles, Verizon was represented by J.P. Morgan as its financial advisor and Jones Day for legal counsel. Vertical Bridge received financial advice from Centerview Partners LLC and legal guidance from Greenberg Traurig. DigitalBridge was legally represented by Simpson Thacher & Bartlett, while Mayer Brown LLP served as CDPQ’s legal counsel.
