SBA Communications to sell Canadian cell tower network for $446-million

SBA Communications Corp. is selling its Canadian cell tower network to CVC DIF for $446-million. The 369 towers represented one of Canada's largest independent wireless tower portfolios. SBA has had "reasonable success" in Canada since entering in 2009 but has been unable to meaningfully grow and made the decision to explore alternatives. The transaction is expected to close before the end of 2025.

Florida-based SBA Communications Corp. (SBAC-Q) has announced the sale of its Canadian cell tower network to CVC DIF, a European private equity and investment fund, for $446 million. The transaction, which includes 369 towers, represents one of Canada's largest independent wireless tower portfolios [1].

SBA, a real estate business that owns cellphone towers in the U.S., Canada, and other countries, has been operating in Canada since 2009. Despite having "reasonable success," the company has been unable to meaningfully grow its Canadian portfolio and has decided to explore alternatives [1]. The sale to CVC DIF is expected to close before the end of 2025, subject to regulatory approvals [1].

The Canadian tower portfolio has been generating approximately $27 million in annual leasing revenue and $15 million in cash flow after taxes, according to SBA. The business is diversified and underpinned by long-term customer relationships, as noted by CVC DIF partner Tom Goossens [1].

This transaction reflects SBA's disciplined approach to portfolio management, focusing on markets with stronger growth potential in the medium to long term, according to Bank of Nova Scotia analyst Maher Yaghi [1].

In the second quarter of 2025, SBA Communications Corp. exceeded internal projections, leading to an increase in full-year guidance across all key metrics. The company reported a 20% increase in full-year services revenue guidance, primarily due to accelerated carrier installations in the U.S. [2]. However, SBA faces challenges such as elevated levels of churn in certain international markets and rising interest rates, which may impact its future performance [2].

References:
[1] https://www.theglobeandmail.com/business/article-sba-sells-cell-towers-wireless-telus-cvc-capital/
[2] https://au.finance.yahoo.com/news/sba-communications-corp-sbac-q2-070552539.html