BOCA RATON, Fla. (AP) — SBA Communications Corp. said Wednesday that it reached a deal to expand its presence in Brazil with the purchase of about 2,000 wireless sites from Oi SA, one of Brazil's largest telecommunications service providers, for about $645 million.
Jeffrey Stoops, the communications tower operator's president and CEO, said that the sites are concentrated in the most populous areas of Brazil and are attractive to tenants. The deal also establishes SBA as one of the largest independent tower operators in Brazil, he said.
When the deal closes, Oi will enter into a long-term lease for antenna space on each of the sites. The sites currently have 1.6 tenants per site and include leases with all of the major wireless carriers in Brazil, SBA said.
The deal is expected to close before the end of March. When that happens, SBA will own or have use rights related to over 5,000 sites in Brazil. SBA previously acquired use rights for Oi 2,113 sites in a deal that closed last week.
Boca Raton, Fla.-based SBA said it expects to fund the new deal with cash on hand, along with existing and future debt.
Its shares finished at $85.42 on Tuesday. Its shares are up 20 percent so far this year.