Verizon Communications and Vertical Bridge have announced a $3.3 billion agreement in which Vertical Bridge will acquire the exclusive rights to lease, operate, and manage 6,339 wireless communication towers across the U.S. from Verizon subsidiaries.
The transaction, structured as a prepaid lease, will see Verizon receive approximately $2.8 billion upfront in cash.
As part of the agreement, Verizon will lease back capacity on the towers for an initial 10-year period, serving as the anchor tenant, with options to extend the lease for up to 50 years. The deal also allows Verizon to access additional space on the towers, subject to certain conditions. This move is aimed at reducing tower-related costs and increasing vendor diversity in the highly concentrated telecommunications sector.
Hans Vestberg, Verizon’s Chairman and CEO, said, “This transaction provides us with greater financial flexibility to invest in our business and improve our network for customers, while also delivering value to shareholders.” Vestberg emphasized that the agreement strengthens Verizon’s relationship with Vertical Bridge.
Ron Bizick, President and CEO of Vertical Bridge, called the deal “the largest U.S. tower transaction in nearly a decade,” and said it marked a major milestone for the company’s growth. Vertical Bridge, founded a decade ago, aims to become a leading U.S. tower company with a robust portfolio of towers, including purpose-built assets that enhance its position as a key colocation partner.
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Marc Ganzi, CEO of DigitalBridge and Vice Chairman of Vertical Bridge, echoed Bizick’s sentiments, noting the transaction positions the company to meet the growing demand for wireless infrastructure, especially as 5G and AI-driven technologies transform connectivity.
The deal, expected to close by the end of 2024, is backed by DigitalBridge, Vertical Bridge’s majority owner, and CDPQ, a global investment group and long-term shareholder of Vertical Bridge.
J.P. Morgan advised Verizon, with Jones Day as legal counsel, while Centerview Partners LLC advised Vertical Bridge. Legal representation for the parties also included Greenberg Traurig, Simpson Thacher & Bartlett, and Mayer Brown LLP.
