Spanish infrastructure operator Cellnex Telecom has announced a deal to acquire the telecommunications division of UK media and communications infrastructure and services group Arqiva for around GBP 2.0 billion, confirming earlier reports. The transaction involves the acquisition of some 7,400 owned sites and the rights to market around 900 additional sites throughout the UK, said Cellnex, adding that it will become the largest independent operator of wireless infrastructure in the UK if the deal is cleared by the antitrust authorities.
Also included are concessions to use street infrastructure as locations for telecom sites in 14 London boroughs, described as a key element for further extension and network densification ahead of the rollout of 5G. Cellnex said the business and assets to be acquired are expected to generate up to GBP 170 million of annual adjusted EBITDA in 2020, with Cellnex accounting for the business from closing, which is expected in the second half of 2020.
The acquisition follows June’s agreement between Cellnex and BT that gave the Spanish company rights to operate and market 220 high towers located throughout the United Kingdom. Once the Arqiva deal closes, Cellnex will manage a portfolio of around 53,000 sites across Europe, including forecasted rollouts until 2027, covering the UK, Ireland, Spain, Italy, France, Switzerland and the Netherlands.
In a separate statement, Cellnex said its board approved a EUR 2.5 billion capital increase to support the acquisition as well as its active projects pipeline. The share capital increase represents 29 percent of the share capital before the capital increase and 22.5 percent thereafter.
Since its IPO in May 2015, Cellnex has announced investments or commitments to invest some EUR 10.8 billion for the acquisition or construction of up to 42,700 sites that run up to 2027 in the seven European countries in which it operates. These are in addition to the approximately 10,000 sites that the company already had at that time.
