American Tower spends $1bn in Brazil

International infrastructure and tower management firm American Tower Corporation has agreed to buy 100 per cent of the equity interests of BR Towers, a Brazilian real estate company that owns around 2,530 cell towers, for BR2.18bn ($978m). The company also has exclusive use rights to approximately 2,110 additional towers in the country.

American Tower is buying the company from  GPCP V, a private equity fund managed by GP Investments and FIP Multisetorial Plus, a private equity fund managed by Bradesco BBI.

The tower firm believes the asset will generate approximately BR292m in annual run rate revenues and approximately BR181m in annual gross margin.

Tower outsourcing is becoming increasingly common all over the world but more so in developing regions including Africa and parts of Latin America. American Tower currently owns and operates approximately 68,000 communications sites in the United States, Brazil, Chile, Colombia, Costa Rica, Germany, Ghana, India, Mexico, Panama, Peru, South Africa and Uganda.

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