Shenandoah Telecommunications Company (Shentel) announced that it has entered into a Purchase and Sale Agreement with Vertical Bridge Holdco, LLC (Vertical Bridge) to sell its tower portfolio and operations for $310.3 million in cash.
The Shentel Tower Portfolio being sold consists of 226 tower portfolio sites and generated $18.6 million in revenue, $9.5 million of operating income and $11.6 million of Adjusted EBITDA in 2023.
“The proceeds from the sale of our Tower business will provide Shentel with additional growth capital to support the planned expansion of our Glo Fiber line of business to approximately 600,000 homes and business passings by the end of 2026. With the expected closing of this Transaction and the previously announced $356 million of committed financings supporting our pending acquisition of Horizon Telcom, we believe our capital structure is well balanced and will provide future financial flexibility,” said Shentel’s President and CEO, Christopher French.
“We are pleased to add these purpose-built broadband telephony towers to our growing portfolio. The towers are high quality assets with available capacity for additional tenants and are located in difficult areas to build new towers due to zoning restrictions and terrain challenges. The geographic concentration of the portfolio offers a unique opportunity for future deployment of existing and new technologies,” said Vertical Bridge’s President and CEO, Ron Bizick.