I pulled this info from the Yahoo news board.
SpectraSite Acquires Tower Portfolio From GSM Operator DigiPH PCS
Acquisition Provides SpectraSite With Significant Footprint Along Major Corridor in the Southeast
CARY, N.C., Nov. 5 /PRNewswire/ -- SpectraSite Communications Inc., a division of SpectraSite Holdings, Inc. (Nasdaq: SITE - news) today announced plans to acquire 94 towers in the Southeast from GSM operator DigiPH PCS, Inc. in a cash transaction valued at more than $36 million.
The portfolio covers Mobile, Alabama, and the high-growth corridor that connects Jackson, Mississippi, Mobile, and Tallahassee, Florida. All of the towers are less than three years old and have significant capacity for additional tenants.
''The DigiPH portfolio is extremely attractive, as it is located in an area with significant growth potential,'' said Stephen Clark, CEO, SpectraSite. ''We are currently working with four carriers who have future build plans scheduled for this area. The DigiPH sites are high-quality, well-maintained towers in strategic locations. They complement our existing portfolio in that area.''
''The purchase price represents a multiple of 23 times current cash flow, and we anticipate that the number will contract to 10.5 times cash flow within 12 months, as a result of expected collocation revenue,'' Clark added.
''The Southeast has become an extremely competitive wireless marketplace,'' said Annice Jordan, CFO, DigiPH PCS. ''Selling our towers to SpectraSite will generate working capital and enable us to improve coverage and network capacity. We are confident that SpectraSite will maintain the quality and integrity of our tower network.''
The transaction is expected to close by year-end.
SpectraSite will discuss the transaction during the company's third quarter earnings conference call, scheduled for Monday, Nov. 15, 1999, at 11:00 a.m. (EST). Dial in number-800-230-1074, name of call: SpectraSite 3rd Quarter Earnings; host of call: Dave Tomick. A replay will be available starting 11/15, at 2:00 p.m., and ending 11/22 at 11:59 p.m. Replay number: 800-475-6701, International: 320-365-3844, access code: 479793.
About DigiPH PCS
DigiPH PCS -- headquartered in Mobile, Alabama -- is a digital wireless communication company licensed to serve 22 contiguous counties in Alabama, Mississippi and Florida. DigiPH is licensed to offer service in eight BTA's which cover approximately 2.3 million in population. DigiPH PCS is owned by Millry Telephone Company in Washington County, Alabama -- representing more than 50 years of service in the telecommunications industry throughout the region.
About SpectraSite Communications, Inc.
SpectraSite Communications Inc. (www.spectrasite.com), based in Cary, NC, is a leading owner and operator of communications towers for the wireless telecommunications industry. SpectraSite owns nearly 2,400 towers in 45 of the top 50 population centers in the United States, with clusters of towers in major markets including Los Angeles, Chicago, San Francisco, Detroit, Atlanta, Dallas, Boston, Cleveland, St. Louis, Seattle, Tampa, Charlotte, Norfolk and Nashville. SpectraSite has regional offices in the New York, Atlanta, Chicago and San Francisco areas, from which it offers comprehensive turnkey services, including project management, site acquisition services, construction and design, build-to-suit, purchase/leaseback, tower leasing, and tower management and maintenance services to facilitate wireless systems development.
This press release contains ''forward-looking statements'' concerning future expectations, plans or strategies that involve a number of risks and uncertainties. The Company wishes to caution readers that certain factors may have affected the Company's actual results and could cause results for subsequent periods to differ materially from those expressed in any forward- looking statement made by or on behalf of the Company. Such factors include, but are not limited to (i) substantial capital requirements and leverage principally as a consequence of its ongoing acquisitions and construction activities, (ii) dependence on demand for wireless communications, (iii) the success of the Company's tower construction program and (iv) the successful operational integration of the Company's business acquisitions. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances.
SOURCE: SpectraSite Communications Inc.
Dean |
