NEW DELHI, March 17 American Tower Corp (AMT.N)
has agreed to acquire Indian wireless telecoms tower firm Xcel
Telecom, the U.S.-based firm said on Tuesday, without
disclosing financial details.
The Economic Times newspaper had reported on Monday a deal
would be worth more than 7 billion rupees ($136 million),
citing a person familiar with the transaction. [ID:nBOM469531]
The acquisition of Xcel, which owns about 1,700 towers,
will close in the second quarter, American Tower said in a
statement, and help expand its operation in the world's
fastest-growing mobile market.
The combined operations would have about 2,000 towers in 15
of India's 22 telecoms circles, it said.
"This deal will strengthen our base in India and give us
access to a new set of clients and geographies where Xcel has
established connections," Amit Sharma, ATC's president for
Asia, said in the statement.
Towers carry and power the electronic equipment needed to
receive and transmit radio signals for mobile services.
Independent tower companies like American Tower rent or
lease out their towers to mobile operators. Leasing towers is
also attractive for the raft of new telecoms licencees, who can
roll-out their networks faster and at a lower cost.
Xcel is owned by an affiliate of Texas-based private
investment fund Q Investments. American Tower operates more
than 23,000 cell sites in the United States, Mexico and
(Reporting by C.J. Kuncheria; Editing by Ranjit Gangadharan)