Verizon Communications (NYSE: VZ) and Vertical Bridge, a DigitalBridge Group (NYSE: DBRG) portfolio company, yesterday announced a definitive agreement where Vertical Bridge will obtain exclusive rights to lease, manage, and operate 6,339 wireless communication towers across the U.S. from Verizon and its subsidiaries. The deal is valued at approximately $3.3 billion, structured as a prepaid lease with $2.8 billion in upfront cash proceeds for Verizon.
Under the terms, Verizon will lease back capacity on the towers for an initial term of 10 years, with options for extending the agreement up to 50 years through eight optional renewal terms of five years each, subject to certain early termination rights. The deal allows Verizon to access additional space on the towers for future use while optimizing tower-related costs and increasing vendor diversity in the industry. The agreement supports Verizon’s focus on strengthening its network and increasing financial flexibility for future investments. Continue Reading
Hans Vestberg, Verizon Chairman and CEO, emphasized that the transaction provides financial flexibility, allowing the company to invest in its business and improve its network. Ron Bizick, Vertical Bridge President and CEO, hailed this deal as a milestone for the company, further solidifying its position in the wireless tower industry.
Marc Ganzi, CEO of DigitalBridge and Vice Chairman of Vertical Bridge, added that the transaction aligns with their strategic growth, positioning them to support the increasing demand for wireless infrastructure, driven by advancements in AI and 5G technologies. DigitalBridge, which owns a majority stake in Vertical Bridge, has committed capital to facilitate the transaction.
CDPQ, a global investment group, “an important shareholder of Vertical Bridge since 2019,” also committed capital to finance this transaction, according to Verizon. J.P. Morgan acted as financial advisor to Verizon and Jones Day acted as legal counsel. Centerview Partners LLC served as financial advisor to Vertical Bridge and Greenberg Traurig acted as legal counsel. Simpson Thacher & Bartlett acted as legal counsel to DigitalBridge. Mayer Brown LLP acted as legal counsel to CDPQ.
The transaction is expected to close by the end of 2024, subject to customary closing conditions.
This article is reprinted from yesterday’s Bulletin
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