Spanish telecom operator Telefónica’s subsidiary Telxius Telecom has signed an settlement with American Tower Company (ATC) for the sale of its telecommunications towers companies in Europe and Latin America.

Telxius has telecommunications towers in Spain, Germany, Brazil, Peru, Chile and Argentina.

Telefonica, which holds a 50.1% stake in Telxius, mentioned that ATC can pay 7.7 billion euros ($9.4 billion) for the towers.

The settlement includes 30,722 telecommunication tower websites and covers two separate and unbiased transactions: One for the European division and one other for the enterprise in Latin America.

The Spanish operator famous it could make 3.5 billion euro from the transaction, money which it plans to make use of to cut back debt. As a part of the sale, it agreed to proceed current leases on the infrastructure.

“This can be a deal that makes strategic sense inside our roadmap. American Towers was our second provider after Telxius,” mentioned Telefonica President Jose Maria Alvarez-Pallete.

“After this nice operation we’ll proceed to give attention to our most bold targets: the combination of O2 with Virgin in the UK, the acquisition of Oi cellular in Brazil and the discount of debt,” the manager mentioned.

Following this operation, American Tower turns into Telefónica’s main provider in each Europe and Latin America and maintains its standing as a associate in strategic initiatives in Brazil, Argentina and Colombia.

In a separate assertion, American Tower mentioned it expects the property concerned within the transaction to generate roughly $775 million in property income, roughly $410 million in gross margin, and $390 million in adjusted EBITDA.

“This transaction is transformational for our European enterprise and can set up American Tower as one of many largest unbiased communications infrastructure suppliers in Europe. It is usually complementary for our Latin American portfolio and positions us to drive robust long-term natural development throughout each areas whereas augmenting our new construct packages and enhancing {our relationships} with key tenants,” mentioned Tom Bartlett, American Tower’s CEO.

“We’re excited to broaden our partnership with Telefónica by buying a high-quality, well-located portfolio of websites that may additional diversify our international footprint and improve our capacity to assist present broadband connectivity for billions of individuals,” Bartlett added.

ATC additionally mentioned it goals to spend roughly $500 million to assemble a dedicated pipeline of roughly 3,300 new websites in Germany and Brazil by means of 2025.