Communications Sales & Leasing To Buy Tower Cloud For $230 Mln

(RTTNews) - Communications Sales & Leasing Inc. (CSAL) said that it agreed to acquire privately-held Tower Cloud Inc. for $230 million in cash and stock.

Tower Cloud is a provider of data transport services, with a particular focus on providing infrastructure solutions to the wireless and enterprise sectors, including fiber-to-the-tower backhaul, small cell networks, and dark fiber deployments. Tower Cloud's fiber network currently consists of 90,000 fiber strand miles in service across the southeastern United States, with 181,000 fiber strand miles awarded for future deployment for the major wireless carriers.

Under the terms of the agreement, Tower Cloud shareholders will receive initial consideration of $230 million, subject to customary closing adjustments, including $180 million of cash and the issuance of 1.9 million shares of CS&L common stock. In addition, Tower Cloud shareholders may receive additional consideration contingent upon Tower Cloud achieving certain defined operational and financial milestones.

The Company intends to fund the cash portion of the transaction through cash on hand and borrowings under its revolving credit facility.

The transaction is subject to regulatory approvals and other customary terms and conditions. The transaction is expected to close by early fourth quarter of 2016.