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Nextel in towering deal
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February 11, 1999: 10:02 a.m. ET
SpectraSite to buy 2,000 Nextel towers for $560 million, build 1,700 more
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NEW YORK (CNNfn) - Wireless telecom firm Nextel Communications Inc. will sell 2,000 of its communications towers to SpectraSite Communications Inc. for $560 million, the companies said Thursday.
SpectraSite is a leading owner and operator of communications towers in the United States. It will then lease tower capacity back to Nextel (NXTL), among other clients.
As part of the deal, Nextel also will build 1,700 additional communications towers within the next five years to support Nextel's expansion plans.
Under terms of the deal, Nextel received $560 million in cash and 17 percent ownership interest in SpectraSite.
In addition, SpectraSite will get about $490 million more for new tower development programs, most of which will come from equity investors led by the Welsh, Carson, Anderson & Stowe firm.
By the end of the year, SpectraSite hopes to have built 1,000 more towers.
SpectraSite has been pursuing an aggressive consolidation strategy, buying up towers and scouting locations for the construction of others.
Nextel, based in McLean, Va., is a wireless service provider in 92 of the top 100 markets. In addition, it has wireless operations in both North and South America, Japan and China.
SpectraSite, headquartered in Cary, N.C., will own nearly 2,200 towers after completing the Nextel transaction.
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Nextel
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