Telxius has reached an agreement with Telefónica Deutschland Holding AG for the purchase of nearly 10,100 sites and consolidates itself as one of the main global neutral infrastructure operators.     

The agreement, which is subject to the required regulatory approvals, amounts to a total value of EUR 1.5 billion (US$ 1.6 billion), which will be financed 90% via capital increase (subscribed proportionally by its current shareholders) and internally generated resources, and the remainder 10% financed with incremental debt. The operation is structured in two phases, initially acquiring 60% of the sites and the remaining 40% in August 2021.

The acquired portfolio is mainly made up of flat roofs and has growth potential, as it has a current share ratio (tenancy ratio) of 1.04x and a large presence in the main regions of the country, North Rhine-Westphalia, Baden-Württemberg and Bavaria, where 52% of the acquired sites are concentrated. Additionally, it is distributed in a balanced way between urban areas (45%) and semi-urban and rural areas (55%), complementing the footprint of Telxius in Germany, until now mostly rural (84%).

This acquisition will allow Telxius to significantly strengthen its presence in Germany, the largest telecommunications market in Europe and where a strong deployment by operators is expected to improve mobile broadband coverage and for the future deployment of 5G, which will start mainly in urban areas and roofs. Additionally, state commitments and obligations, low levels of fiber penetration and the potential entry of a fourth operator will accelerate network deployments in the country.