Canada鈥檚 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 (鈧�2.8bn) deal .
The C$230bn (鈧�160bn) Canadian investor and the EQT-managed fund are planning to take Radius private by offering the NASDAQ-listed firm鈥檚 shareholders $15 per share, a 28% premium to the stock鈥檚 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鈥檚 portfolio and mandate given it has 鈥渋nflation-adjusted contracted income, little exposure to GDP, and substantial growth opportunities鈥� linked to demand for digital services.
The deal represents the first investment for EQT鈥檚 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 鈧�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鈥檚 advisory team, said the acquisition aligns directly with the fund鈥檚 investment criteria and thematic approach to investing, adding that Radius鈥� 鈥渟trong cash flows, sticky customer base, geographically diverse portfolio and inflation protection鈥� make the company a strong fit for the fund.
Bill Berkman, CEO of Radius, said: EQT鈥檚 global presence and hands-on approach will enable Radius to accelerate origination activity and further invest in both geographic expansion and adjacent asset opportunities.
鈥淲ith EQT and PSP鈥檚 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.鈥�
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