For the price tag of USD 811 million, American Tower Corp (AMT) announced that it has agreed to buy 4,500 towers in Brazil and Mexico from NII Holdings. A real estate investment trust that owns broadcast towers and develops wireless communications, AMT is the largest operator of cellular towers in the US. The terms of the agreement state that the Brazilian and Mexican units of NII Holdings will lease back the towers for twelve years from AMT.
The cellular tower operator revealed that they expect the sites to generate annual revenues of USD 149 million. AMT also said the deal gives them a chance to expand in less-saturated markets. Jim Taiclet, Chief Executive Officer of AMT, said "American Tower will gain significant incremental scale in our Mexican and Brazilian operations, and we anticipate leveraging the strong demand backdrop in both markets to drive meaningful revenue and cash flow growth for many years to come."
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