American Tower REIT enters Canada market with $3.5 billion deal to buy InSite Wireless

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American Tower REIT announced Thursday a deal to buy privately held InSite Wireless Group LLC in a deal valued at $3.5 billion, including debt. InSite owns and operates about 3,000 communications sites, primarily in the U.S. and Canada. American Tower, which owns and operates multitenant communications real estate, said it expects the InSite assets to generate about $150 million in property revenue and $115 million in gross margin in the first year after the deal is completed, which is expected to occur by the end of 2020. “This transaction augments our foundational U.S. business through the addition of a well-run, high-quality, complementary, macro-tower focused portfolio, while also marking our entry into Canada,” said Americn Tower Chief Executive Tom Bartlett. “We believe that these assets are positioned to enhance our organic growth and cash flow trajectory in the future as 5G deployments accelerate and densification initiatives progress.” The stock, which was still inactive in premarket trading, has gained 3.2% year to date, while the SPDR Real Estate Select Sector ETF has lost 7.8% and the S&P 500 has tacked on 6.6%.
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