American Tower has agreed to buy InSite Wireless Group, adding around 3,000 sites to its footprint in the US and Canada. The company will pay USD 3.5 billion for InSite including assumption of its debt.
InSite's portfolio includes more than 1,400 owned towers in the US, over 200 towers owned in Canada and approximately 70 distributed antenna system networks in the US. In addition, InSite controls more than 600 land parcels under communications sites and around 400 rooftop sites. Along with sites operated and managed, it has access to some 3,000 sites in North America.
ATC said the acquisition would complement its existing US footprint with "well-run, high-quality" macro towers and give it an entry on the Canadian market. The deal is expected to add to cash flow, supported by the growing 5G footprint in the US.
American Tower expects the assets to generate around USD 150 million in property revenue and USD 115 million in gross margin in the first full year in its portfolio. The acquisition will add immediately to AFFO per share and is expected to close by the end of 2020. Financing for the deal is not expected to impact the current credit ratings.
