American Tower is merging with SpectraSite, in a deal that will combine two leaders of the tower industry.
The agreement was approved by both companies’ boards of directors.
“This combination is a defining event in the tower industry, creating the clear industry leader,” said American Tower Chairman and CEO, Jim Taiclet. “We believe there is a compelling alignment between the strategies of American Tower and SpectraSite. First, we are both fully focused on the tower leasing business. Second, we are both committed to operational excellence, investing continually in our people, processes and systems. And third, we are both committed to delivering superior returns to shareholders as we generate increasing free cash flow over time.”
According to a press release, American Tower and SpectraSite will merge in a stock for stock exchange, in which shareholders of SpectraSite will receive 3.575 shares of American Tower Class A common stock for each common share of SpectraSite.
“The combination of SpectraSite and American Tower will ensure our ability to compete successfully in serving the needs of our customers,” said SpectraSite President and CEO, Steve Clark. “We will have more towers in the best markets. Together, we will be the premier tower company in North America.”
After the deal is complete, American Tower shareholders will own about 59% and SpectraSite shareholders would own about 41% of the combined company.
The agreement must still be approved by shareholders of both companies.
The transaction is expected to be completed in the second half of this year.
Chris is a staff writer for murdok. Visit murdok for the latest ebusiness news.
