American Tower and SpectraSite to merge
American Tower said it would merge with rival SpectraSite in a stock-for-stock exchange, creating the nation’s largest tower company with more than 22,000 wireless and broadcast towers and more than $1 billion in annual revenue.
American Tower will issue about 181 million shares in the transaction, valued at $3.1 billion based on the stock’s closing price of $17.21 on May 3, 2005. SpectraSite shareholders will receive 3.575 shares of American Tower common stock for each share of common stock they hold in SpectraSite, for an exchange ratio of $61.53 per share. After the merger, American Tower shareholders will own about 59% of the combined company, with SpectraSite shareholders owning 41%. American Tower also will assume about $750 million in SpectraSite debt.
The companies expect the merger to close in the second half of this year. The transaction–which was unanimously approved by the boards of directors of both companies–is subject to shareholder and regulatory approvals. A spokesperson for American Tower declined to confirm or deny speculation that the combined company would operate under the American Tower name.