Cox Communications has agreed to contribute about 150 communications towers as part of a larger overall investment by parent Cox Enterprises in InSite Wireless Group.
According to a statement, Cox Enterprises will contribute an undisclosed amount of cash to the partnership. Terms were not disclosed.
The deal appears to be the final spike in the Atlanta-based MSO's abandoned wireless strategy.
Cox Communications began investing in and developing its own wireless network in 2008, but scrapped those plans three years later after it determined it lacked the necessary scale. In December, the cable giant agreed to sell its wireless spectrum to Verizon Wireless for $315 million.
"The wireless tower industry continues to see significant opportunities for growth, and InSite's experienced management team has a successful history of capitalizing on these opportunities," Cox Enterprises vice president of corporate development Jamie Kennedy said in a statement. "Not only do they share our outlook on growing the business, but they also share similar values and goals with our other Cox companies. We look forward to working with them in the years to come."
Based in Alexandria, Va., InSite is one of the top 10 U.S. tower companies (as ranked by RCR Wireless) and develops, manages, owns, and operates more than 460 telecommunications towers and sites for wireless carriers across the United States, Puerto Rico, and the U.S. Virgin Islands (prior to closing on the Cox transaction).
"We view this as a unique opportunity not only to add to our current tower portfolio, but also to continue the strong growth of both our tower and DAS divisions as we benefit from Cox's equity investment, as well as their knowledge and expertise in the communications sector," InSite CEO David Weisman said in a statement.
The transaction is scheduled to close May 31. Wells Fargo served as financial advisor to Cox and Dow Lohnes PLLC provided legal counsel. InSite was represented by Kirkland & Ellis LLP and Sullivan & Worcester LLP, with advisory assistance from InSite investor Catalyst Investors.
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