Verizon Strikes $3 Billion Tower Deal with Vertical Bridge

Verizon agreed to give infrastructure company Vertical Bridge exclusive rights to operate, lease, and manage over 6,000 towers for $3.3 billion. The move is a part of the operator’s efforts to drive down costs and raise capital to invest in the network. The transaction is expected to close by the end of this year, subject to customary conditions.

Vertical Bridge will obtain access to 6,339 towers across all 50 US states and Washington DC, paying $2.8 billion upfront in cash. Verizon will then enter into a ten-year agreement to lease back capacity on the towers from Vertical Bridge, with options to extend the term up to 50 years. The operator will also have access to certain space on the towers for future use, subject to certain restrictions.

Verizon explained the agreement supports its efforts to lower tower-related costs and provide greater vendor diversity in a concentrated industry. Hans Vestberg, Verizon CEO and chair, added the company is well positioned with greater financial flexibility to invest in their business and return value to shareholders. Counterpart at Vertical Bridge, Ron Bizick said the deal is the largest US tower transaction in almost a decade and is a significant step for the company.