Benzinga | May 5, 2021 06:11AM EDT

American Tower Announces CDPQ Will Acquire 30% Stake In ATC Europe; Transaction Valued At Over 1.6B

American Tower Corporation (NYSE:AMT) and Caisse de d?p?t et placement du Qu?bec (CDPQ), a global investment group, today announced that CDPQ will acquire a 30% stake in ATC Europe as part of a new long-term strategic partnership through a transaction valued at over (euro)1.6 billion, implying an enterprise value of more than (euro)8.8 billion for ATC Europe. Pursuant to the partnership agreement, American Tower will retain managerial and operational control, as well as day-to-day oversight of ATC Europe, while CDPQ will obtain seats on ATC Europe's Board of Directors, along with certain governance rights.

The transaction will position American Tower and CDPQ to jointly benefit from sustainable, long-term secular wireless growth trends in select European markets as 5G deployments and demand for communications infrastructure accelerate. ATC Europe's portfolio, pro forma for the closing of American Tower's pending Telxius acquisition, will consist of nearly 30,000 communications sites.

Tom Bartlett, American Tower's President and Chief Executive Officer, stated, "We are pleased to partner with CDPQ in Europe, where we expect to create tremendous value. CDPQ's extensive infrastructure experience, deep knowledge of the region and long-term investment philosophy are in close alignment with American Tower's European strategy, operational excellence and long track record of historical success. This transaction not only contributes to the funding of our pending Telxius acquisition, which will transform our scale and leadership position in highly attractive markets like Germany and Spain, but also creates a solid, adaptable framework through which future expansion opportunities can be evaluated and financed."

Emmanuel Jaclot, CDPQ's Executive Vice-President and Head of Infrastructure, said, "Through this new long-term strategic partnership with American Tower, CDPQ is thrilled to play an active role in establishing one of Europe's largest independent communications infrastructure providers. This dedicated growth platform with a global leader enables us to increase our exposure in key European markets -- including Germany, France and Spain -- while contributing to the development of critical carrier-neutral telecom networks, at a time where telecommunications needs are more important than ever."

BofA Securities, Inc. and CDX Advisors are serving as financial advisors to American Tower. HSBC is serving as financial advisor to CDPQ. The transaction is expected to close in the third quarter of 2021, subject to customary closing conditions, including regulatory approvals.