LONDON, UK: Helios Towers, the independent telecommunications infrastructure company, has closed the acquisition of Airtel Africa’s passive infrastructure company in Madagascar, adding 490 sites to its portfolio.
The gross consideration for the transaction will be $52 million.
Helios Towers and Airtel Africa have also entered into a 12-year service agreement on the acquired assets, which, in-line with prior communications, are expected to deliver Adjusted EBITDA of US$5 million in the first full year of ownership, with further growth anticipated through 135 committed build to suits over the next three years and colocation lease-up.
Helios Towers is a leading independent telecommunications infrastructure company, having established one of the most extensive tower portfolios across Africa. It builds, owns and operates telecom passive infrastructure, providing services to mobile network operators.
Helios Towers owns and operates telecommunication tower sites in Tanzania, Democratic Republic of Congo, Congo Brazzaville, Ghana, South Africa, Senegal and Madagascar. Following recent acquisition agreements and subject to regulatory approval, Helios Towers expects to establish a presence in four new markets across Africa and the Middle-East over the next six months. Including these acquisitions and committed BTS, the Group’s total site count is expected to increase from over 9,000 towers to almost 15,000.
Helios Towers pioneered the model in Africa of buying towers that were held by single operators and providing services utilising the tower infrastructure to the seller and other operators. This allows wireless operators to outsource non-core tower-related activities, enabling them to focus their capital and managerial resources on providing higher quality services more cost-effectively.