PTI adds telecom assets in Brazil

Blackstone portfolio company Phoenix Tower International has acquired T4U Holding Brasil, and with it, 529 wireless infrastructure assets across the country.

Phoenix Tower International (PTI), a company owned by funds managed by Blackstone's Tactical Opportunities business, this week announced its acquisition of T4U Holdings Brasil. The deal will see T4U assets merged with PTI's existing Brazilian towers business, with the combined businesses operating under the new banner of Phoenix Tower do Brasil.

The new company will own and operate 529 wireless infrastructure assets throughout the country, with a pipeline of more than 250 wireless towers under construction for all major wireless operators in the country, according to a related release.

“We feel that the merged business offers our wireless customers a significant footprint of high-quality tower assets in major urban locations across Brazil as well as a strong combined team of experienced tower professionals focused on leasing, operating and building towers to meet our customers' network demands now and in the future,” said PTI CEO Dagan Kasavana.

The move coincides with an effort by the Brazilian Agency for Telecommunications to push mobile operators to pick up the pace of 4G network development across the country to support market growth.

Research by Business Monitor International (BMI) conducted in 2012 found approximately 60,000 telecom towers across Brazil and 275 million cellphone users. For comparison, BMI noted in the same research that the US, which is similarly sized, had roughly 100,000 towers and 345 million users in the same period.

“We are thrilled to announce this investment in Brazil, a market where we see considerable growth in the wireless market and where we hope to explore further investment activity more broadly, said Jasvinder Khaira, a managing director in Blackstone's Tactical Opportunities business. “We believe the combination of PTI and T4U's experienced teams create a strong foundation from which to build upon T4U's existing portfolio of assets and pursue additional growth opportunities in the sector.”

Founded in 2013, Boca Raton, Florida-based PTI is focused on establishing a reputation as a premier site provider to wireless operators in high-growth markets internationally. Currently, the company operates in Brazil, Colombia, Costa Rica, Dominican Republic, Panama and the US. Customers include America Movil, Telefonica, Cable & Wireless Communications, AT&T, T-Mobile, Sprint-Nextel, Verizon and Digicel Group.