Canada’s Public Sector Pension Investment Board (PSP) has teamed up with EQT Active Core Infrastructure to buy telecommunications cell sites owner Radius Global Infrastructure in a $3bn deal (€2.8bn).
The C$230bn (€160bn) Canadian investor and the EQT-managed fund are planning to take Radius private by offering the NASDAQ-listed firm’s shareholders $15 per share, a 28% premium to the stock’s last closing price prior to the announcement.
Radius owns and acquires digital infrastructure, including ground, tower, rooftop and in-building cell sites, in over 20 countries across North and South America, Europe, and Australia. The company owns a portfolio of 9,000 leases across nearly 7,000 sites.
Patrick Charbonneau, senior managing director and global head of infrastructure investments at PSP, said Radius is a strong fit with PSP’s portfolio and mandate given it has “inflation-adjusted contracted income, little exposure to GDP, and substantial growth opportunities” linked to demand for digital services.
The deal represents the first investment for EQT’s longer-hold fund targeting core infrastructure companies that provide essential services mainly in Europe and North America.
The private markets manager is seeking to raise €5bn for EQT Active Core Infrastructure, a fund expected to be held for 15 to 25 years and focus on core infrastructure companies at the lower end of the risk-return spectrum.
Alex Greenbaum, partner within EQT Active Core Infrastructure’s advisory team, said the acquisition aligns directly with the fund’s investment criteria and thematic approach to investing, adding that Radius’ “strong cash flows, sticky customer base, geographically diverse portfolio and inflation protection” make the company a strong fit for the fund.
Bill Berkman, CEO of Radius, said: EQT’s global presence and hands-on approach will enable Radius to accelerate origination activity and further invest in both geographic expansion and adjacent asset opportunities.
“With EQT and PSP’s support, we will continue to be a strong and collaborative partner for our tenants as we continue to grow Radius as the premier global aggregator and owner of digital infrastructure-oriented real property assets.”
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