American Tower on Wednesday announced the acquisition of a 51% stake in Indian passive infrastructure specialist Viom Networks.
The U.S.-based firm brokered the 76 billion-rupee (€1.03 billion) cash deal with Viom’s owners Tata Teleservices, SREI Infrastructure Finance and other minority shareholders.
In a statement, the firms said that Tata Teleservices will retain a part of its holding, alongside various private equity funds. However, American Tower may in future acquire the remaining 49% of Viom Networks.
Viom Networks owns and operates 42,200 mobile towers in India and 200 indoor distributed antenna systems. American Tower’s 14,000 Indian towers will be merged with Viom’s assets on completion of the deal, which is expected in mid-2016, regulatory approvals permitting.
"With a population of nearly 1.3 billion people, rapidly growing smartphone penetration and limited fixed line infrastructure, India’s vibrant wireless industry is poised for a sustained period of network investment," said American Tower CEO James Taiclet Jr, in a statement.
"ATC India’s greatly expanded portfolio of towers will enable us to play a key role in providing the communications real estate essential to the deployment of advanced wireless technologies throughout the country and to support the Indian government’s Digital India Initiative," he added.
