Sponsored by Brookfield and backed by global infrastructure investors, Tower Infrastructure Trust (Tower InvIT) has agreed to purchase Space Teleinfra Ltd for Rs 900 crore ($120 million).
Space Teleinfra Private Limited (STIPL) is a reputed name that provides voice and data connectivity. It is a shared telecom infrastructure provider founded by Ankit Goel and Radhey R Sharma in 2016. It focuses on supplying outdoor connectivity, Wi-Fi, small cells and FTTx infrastructure for different types of buildings. The company has a presence throughout India.
The agreement was acted upon by the exclusive financial advice of Ambit Private Limited to the shareholders. A milestone-based consideration is also included in the agreement, in cash and units. According to Ankit Goel, Co-founder, and Managing Director, STIPL, this transaction would provide growth opportunities for the company by Tower InvIT. Since the boom of digitalisation in recent years, this collaboration is expected to boost the expansion of the company, with the onset of 5G.
Indoor connectivity is slowly becoming essential in the country, which Space Teleinfra can act upon and bridge the gap. It is expected that this acquisition will help Space Teleinfra to participate in the next chapter of growth in the shared Telecom Infrastructure business. It can offer preeminent and holistic solutions to MNOs. Sharma, co-founder and director of Space Teleinfra added that the company will continue its leadership, with strong management teams of Space Teleinfra and Tower InvIT, and investors.
The stockholders’ legal advisor was Khaitan and Co, while their tax counsel was Bobby Parikh Associates. With this acquisition of nearly $ 120 million (₹900 crores), Space Teleinfra can grow better, with Brookfield and Tower Infrastructure Tower’s help. Moreover, it can work to bridge the gap of connectivity pan India.
Categories: Corporate M&A