Verizon Communications has made a deal to sell the rights to lease, operate and manage more than 6,300 towers across the United States to telecom infrastructure company Vertical Bridge for $3.3 billion.
Ron Bizick, president and CEO of Vertical Bridge, said that the deal was the largest U.S. tower transaction in nearly a decade.
The towers are owned by various subsidiaries of Verizon, which retains ownership of the towers and is entering into a 10-year lease-back of capacity as the anchor tenant on the towers, with options to extent up to 50 years. The transaction is being structured as a prepaid lease, Verizon noted, with $2.8 billion in cash upfront. It is expected to close by the end of this year, subject to regulatory approvals.
Both Vertical Bridge’s parent company DigitalBridge and global investment company CDPQ, which is a large shareholder in Vertical Bridge, are contributing to the financing of the transaction, which company executives described as pivotal for the company’s realization of its long-term strategy.
“This transaction represents a significant step for Vertical Bridge,” said Bizick. “The vision of the company founders 10 years ago was to create a permanent, private, and at-scale U.S. tower company. This transaction marks a significant milestone in the realization of that vision. Upon the completion of this transaction, these assets, together with our existing portfolio which includes thousands of young, purpose-built towers, enhance Vertical Bridge’s position as a fast, friendly, and flexible colocation partner to the wireless industry.”
Marc Ganzi, CEO of DigitalBridge and vice chairman of Vertical Bridge, called it a “landmark transaction … [that] marks an inflection point” for the company, which was formed in 2014. “This transaction not only solidifies our leadership in the tower space but also strategically positions us to capitalize on the growing demand for wireless infrastructure, especially as AI-driven technologies and 5G continue to reshape connectivity needs across industries,” he added.
Verizon already has an existing build-to-suit joint venture with Vertical Bridge, based on a deal made in 2023 in order to support rapid expansion of Verizon’s 4G and 5G infrastructure.
The 6,339 towers are scattered across all 50 states and the District of Columbia. In a joint release, the two companies said that the deal “will support Verizon’s efforts to drive down tower-related costs and provide greater vendor diversity in a concentrated industry.” That may particularly appeal to mobile network operators as they tighten their capex and opex spending.
“As the nation’s largest mobility provider, we are well positioned with greater financial flexibility to invest in our business, return value to our shareholders and make the nation’s best network even better for customers,” said Verizon Chairman and CEO Hans Vestberg. “This transaction builds on our existing relationship with Vertical Bridge while realizing substantial value for this unique set of assets and allows us to be agile in optimizing the network with one of the best operating partners.”
