Verizon and Vertical Bridge finalize $3.3 billion tower deal

On September 30, 2024, Verizon Communications and Vertical Bridge announced a significant agreement involving the leasing and management of 6,339 wireless communications towers across the United States and Washington, D.C. The deal, valued at approximately $3.3 billion, includes a prepaid lease structure with Verizon receiving about $2.8 billion in cash upfront. This transaction allows Verizon to lease back capacity on the towers for a decade, with options to extend the lease term up to 50 years. The agreement aims to enhance Verizon's operational flexibility and reduce tower-related costs while providing greater vendor diversity in a concentrated industry. As the largest mobility provider in the nation, Verizon's Chairman and CEO, Hans Vestberg, emphasized the financial benefits and the opportunity to improve network services for customers. Vertical Bridge, which has been a key player in the wireless industry since its founding in 2014, views this transaction as a pivotal moment in its growth. The company will leverage these new assets alongside its existing portfolio to strengthen its position as a colocation partner. Ron Bizick, President and CEO of Vertical Bridge, expressed pride in being selected for this landmark deal, marking it as the largest tower transaction in the U.S. in nearly a decade. The involvement of CDPQ, a global investment group, further underscores the significance of this transaction, as it committed capital to finance the deal. The collaboration between these two companies is expected to yield substantial benefits for both parties and the wireless industry as a whole.