Cellnex has reached an agreement with Orange Spain for the acquisition of a portfolio of 1,500 locations of telecommunications by 260 million euros, as reported by the wireless telecommunications infrastructure firm, which will finance the operation with available cash.
Likewise, both companies have signed an initial 10-year contract –extensible to another 10-year period and subsequent one-year periods–, for which Orange Spain will continue to use the sites that Cellnex will operate, locating their equipment of voice and data signal transmission.
Boosting business in Spain
With this operation Cellnex “not only strengthens its position in Spain as an independent telecommunications infrastructure operator, but also consolidates the relationship with Orange as one of the key clients of the group with whom it had already been working in Spain and also in France, according to highlighted the Global Business Director at Cellnex Telecom, Àlex Mestre.
For its part, the operator ensures that the towers sold are not strategic and that the revenues will allow it to “allocate resources to projects that create greater value creation for the company,” such as the deployment of fifth-generation communications (5G) or the improvement of its fiber network infrastructure. In short, "maximize the profitability of the Orange Spain business as a whole".
More than 11,000 million euros of investment
In 2019 Cellnex has reached several agreements for the acquisition of assets and companies that, once all the associated programs for the construction of new sites are closed and deployed, will lead it to expand the current portfolio of assets in the seven European countries by more than 25,000 That the company is present.
Since the IPO in 2015, Cellnex has executed or committed investments worth nearly 11,000 million euros for the acquisition or construction – until 2027 – of up to 44,200 telecommunications infrastructures that add up to the approximately 10,000 with which the company at that time.