3i Infrastructure has signed an agreement to acquire a 36% economic interest in Wireless Infrastructure Group (WIG), investing approximately £75 million (US$105.7 million) and joining existing majority shareholder Wood Creek Capital Managemen and the management team as shareholders.

WIG is an independent communications infrastructure provider headquartered in Bellshill, Scotland. The business builds and operates communication towers (masts) in rural and suburban areas, together with fibre based networks, to improve mobile coverage in large buildings and on city streets. WIG is independent of any network operator and invests in shareable infrastructure that is made available to all networks to access.

Following its inception in 2006, WIG has invested in over 2,000 shared communications towers and other wireless infrastructure across the UK. The business has also expanded recently into the Netherlands and Ireland.

Wireless broadband is now an essential service and substantial investment is required in the years ahead to build out coverage in rural areas and to keep pace with demand in urban centres. WIG provides the enabling infrastructure to support mobile operators and other wireless networks as they connect with their customers. 

Independent tower operators account for only approximately 25% of European tower ownership compared to over 60% of towers globally and over 80% in the US.  As the tower sector gathers momentum in Europe, this is an attractive time to be investing in WIG. 

The transaction is part of a strategy to scale up WIG.  The business has ambitions to expand its footprint in the UK as well as to participate in the expansion of the sector in Europe.  

Completion of the transaction is conditional only upon receiving clearance from the European Commission under the EU Merger Regulation. Completion is anticipated by the end of June 2016.

Richard Laing, Chairman, 3i Infrastructure plc, commented:

“We are pleased to be investing in WIG and to support its future growth ambitions, both in the UK and Europe. This investment fits well with our strategy of investing in mid-market economic infrastructure businesses with long term, inflation linked, cash flows.”

Ben Loomes and Phil White, Managing Partners and Co-heads, Infrastructure, 3i Investments plc, added:

“We are delighted to be backing an industry leading platform at an important time for the independent tower sector.  We have been impressed by WIG’s focus on high quality infrastructure and its experienced management team.  We look forward to working with the management team and Wood Creek to leverage our network to help grow the business, both in the UK and in Europe, and deliver attractive returns to 3i Infrastructure’s shareholders.”