Verizon Communications and Vertical Bridge have finalized a deal for Vertical Bridge to lease, operate, and manage 6,339 wireless towers across the U.S. for $3.3 billion. Verizon will receive an upfront cash payment of $2.8 billion, with additional commercial benefits included. The agreement includes a 10-year leaseback for Verizon, allowing the telecom giant to continue using the towers as the anchor tenant, with options to extend the lease for up to 50 years. This move is designed to reduce Verizon’s tower-related costs while increasing vendor diversity in a highly concentrated market.
The partnership strengthens the existing relationship between Verizon and Vertical Bridge, which already includes a build-to-suit joint venture. As part of the deal, Verizon gains access to extra tower space for future expansions, subject to certain restrictions. Vertical Bridge, a privately held U.S. tower company, will enhance its existing portfolio of thousands of towers, positioning itself to better serve the growing wireless infrastructure demands driven by technologies like 5G and AI.
DigitalBridge, the majority owner of Vertical Bridge, and CDPQ, a key shareholder, have both committed capital to support the transaction. The deal is expected to close by the end of 2024, pending customary regulatory approvals.
• Verizon and Vertical Bridge finalize $3.3 billion tower deal.
• Vertical Bridge will manage 6,339 wireless towers across the U.S.
• Verizon receives $2.8 billion in cash and a 10-year leaseback agreement.
• Lease term options could extend up to 50 years.
• Vertical Bridge strengthens position as a colocation partner for wireless infrastructure.
“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 CEO Hans Vestberg.
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