EQT AB and the Public Sector Pension Investment Board agreed to acquire Radius Global Infrastructure Inc. in a deal worth about $3 billion, including debt, adding to the Swedish alternative asset manager’s already substantial digital-infrastructure portfolio.
(Bloomberg) — EQT AB and the Public Sector Pension Investment Board agreed to acquire Radius Global Infrastructure Inc. in a deal worth about $3 billion, including debt, adding to the Swedish alternative asset manager’s already substantial digital-infrastructure portfolio.
EQT and Canada’s PSP will pay $15 a share in cash for Radius, which leases cell sites to wireless-tower companies and mobile-network operators, according to a statement Wednesday, confirming a Bloomberg News report. EQT is investing in Radius via its Active Core Infrastructure arm.
“Radius is one of the market leaders in the aggregation of digital infrastructure sites and we believe it will benefit from long-term tailwinds supported by growing demand for data,” EQT’s Alex Greenbaum, a partner in that group, said in a statement.
Radius, led by Chief Executive Officer Bill Berkman, has been exploring strategic options including a sale since at least May, Bloomberg News reported. EQT’s portfolio already includes Zayo, GlobalConnect and EdgeConneX.
“This transaction is both an exciting next step for Radius and a great outcome for shareholders as it provides compelling value,” Berkman said in a statement.
As one of the largest private infrastructure investors in the world, Stockholm-based EQT is targeting companies that are heavily asset-backed, resilient to market volatility, have high barriers to competition and long-term growth prospects, its executives have said. More specifically, power and utilities, transport and logistics, and digital infrastructure are among some core infrastructure assets the investment firm is eying.
Deals for network towers and related assets are helping dealmakers defy a broader slowdown in global mergers and acquisitions activity. Telecom operators are shifting the assets to help raise funds for fiber-optic rollouts and wireless upgrades, and are finding willing buyers in the form of investment firms seeking predictable returns in volatile markets.
The deal is scheduled to close in the third quarter. Citigroup Inc. and Goldman Sachs Group Inc. advised Radius on the deal while Morgan Stanley advised EQT and Evercore Inc. advised PSP.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.