BOSTON (AP) — American Tower Corp. said Friday that it agreed in separate deals with wireless service provider NII Holdings Inc. to buy up to 2,790 towers in Brazil and 1,666 in Mexico for a total of about $811 million.
The Boston-based wireless communications infrastructure company said the acquisitions give it significant scale in both its Brazil and Mexico operations. It plans to use cash on hand and borrowing under existing debt facilities to fund the acquisitions.
Once the deals close, the towers are expected to collectively generate about $149 million in annual run rate revenue and immediately boost American Tower’s adjusted funds from operations.
Both Nextel Brazil and Nextel Mexico have agreed to leaseback the towers from American Tower for at least 12 years with additional renewal options after that.
American Tower said it expects to invest about $50 million in startup capital related to the towers.
The deals remain subject to regulatory approvals and are expected to initially close in the fourth quarter of 2013.
American Tower shares rose 98 cents to $69.97 in midday trading, while Reston, Va.-based NII shares fell 8 cents to $6.59.