Radius Global Infrastructure to be acquired by EQT and PSP for about $3bn

May 2023 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

May 2023 Issue

Swedish private equity firm EQT, together with the US Public Sector Pension Investment Board (PSP), has agreed to acquire Radius Global Infrastructure.

Under the terms of the deal, EQT and PSP will indirectly acquire Radius for $15 per share in cash, representing a total enterprise value of approximately $3bn. The purchase price represents a premium of 28 percent over the unaffected closing price of Radius shares on 24 February 2023, and a premium of 31 percent to the volume-weighted average price of Radius shares over the last 90 days before the deal was announced. The deal is the first transaction signed by EQT Active Core Infrastructure.

The Radius board of directors, upon the recommendation of a transaction committee comprised of independent directors, has unanimously approved the transaction, and the transaction is not subject to a financing condition. The deal is expected to close in the third quarter of 2023, subject to satisfaction of customary closing conditions including the receipt of certain regulatory approvals and approval by Radius shareholders, as well as certain other conditions related to Radius’ indebtedness and available cash.

Radius owns and acquires critical digital infrastructure, including ground, tower, rooftop and in-building mobile telephone sites, in over 20 countries across North and South America, Europe and Australia. Upon completion of the transaction, Radius shares will no longer be listed on any public securities exchange. The company will retain its name and brand and will continue to be operated by its existing management team and employees worldwide.

“This transaction is both an exciting next step for Radius and a great outcome for shareholders as it provides compelling value,” said Bill Berkman, co-chairman and chief executive of Radius. “Partnering in a private capital context with EQT and PSP, both of which have significant expertise in communications infrastructure, will enable Radius to accelerate origination activity and further invest in both geographic expansion and adjacent asset opportunities.

“With EQT and PSP’s support, we will continue to be a strong and collaborative partner for our tenants as we continue to grow Radius as the premier global aggregator and owner of digital infrastructure-oriented real property assets,” he added.

“Radius is one of the market leaders in the aggregation of digital infrastructure sites and we believe it will benefit from long-term tailwinds supported by growing demand for data,” said Alex Greenbaum, a partner in the advisory team at EQT Active Core Infrastructure. “This acquisition aligns directly with EQT Active Core Infrastructure’s investment criteria and thematic approach to investing – Radius’ strong cash flows, sticky customer base, geographically diverse portfolio and inflation protection make the Company a strong fit for the fund. We look forward to partnering with the entire Radius team as they continue their strong growth trajectory.”

“PSP is thrilled to participate in this exciting acquisition of Radius Global Infrastructure,” said Patrick Charbonneau, senior managing director and global head of infrastructure investments at PSP. “Radius is a strong fit with PSP’s portfolio and mandate given it has inflation-adjusted contracted income, little exposure to GDP, and substantial growth opportunities linked to demand for digital services. I want to thank EQT who brings valuable expertise to help this partnership reach its full potential and I look forward to working with the excellent management team at Radius to support their continued delivery of value-accretive products to their customers.”

In March, Radius reported record revenue of $135.5m in 2022, up 31 percent from 2021, with gross profit increasing to $128.5m, up 27 percent over the prior year.

Richard Summerfield