Verizon has finalized a $3.3 billion agreement to transfer the leasing, operation, and management rights of more than 6,300 towers across the U.S. to telecom infrastructure firm Vertical Bridge.
Ron Bizick, President and CEO of Vertical Bridge, emphasized the magnitude of the deal, describing it as the largest tower transaction in almost a decade.
Under the arrangement, Verizon retains ownership of the towers while adopting a 10-year lease-back strategy, with options extending up to 50 years. The structure is a prepaid lease involving $2.8 billion in immediate cash. The completion of the deal hinges on regulatory approvals and is anticipated by the end of the year.
The financing involves contributions from DigitalBridge, the parent company of Vertical Bridge, and CDPQ, a significant shareholder in Vertical Bridge. Vertical Bridge executives consider this transaction crucial for achieving their long-term objectives.
“This transaction is a pivotal step for Vertical Bridge,” stated Bizick. “It aligns perfectly with our founders’ vision of establishing a permanent and at-scale U.S. tower company. Once completed, these assets will strengthen our existing portfolio and solidify our role as a dynamic colocation partner to the wireless industry.”
Marc Ganzi, CEO of DigitalBridge and Vice Chairman of Vertical Bridge, describes the agreement as a “landmark transaction,” which he claims solidifies the company’s leadership in the tower industry. “This transaction not only solidifies our leadership in the tower space but also strategically positions us to capitalize on the growing demand for wireless infrastructure, especially as AI-driven technologies and 5G continue to reshape connectivity needs across industries,” Ganzi added.
Verizon already has an existing build-to-suit venture with Vertical Bridge, initiated in 2023, to support the rapid expansion of Verizon’s 4G and 5G infrastructure.
This new transaction encompasses 6,339 towers distributed throughout all 50 states and the District of Columbia. In a joint statement, both companies highlighted that the deal aims to reduce Verizon’s tower-related costs and broaden vendor diversity within the sector. This could be particularly beneficial for mobile network operators looking to optimize their capital and operating expenditures.
Hans Vestberg, Chairman and CEO of Verizon, emphasized that the transaction offers increased financial flexibility. “As the nation’s largest mobility provider, we are well positioned with greater financial flexibility to invest in our business, return value to our shareholders and make the nation’s best network even better for customers,” Vestberg said. “This transaction builds on our existing relationship with Vertical Bridge while realizing substantial value for this unique set of assets and allows us to be agile in optimizing the network with one of the best operating partners.”
