Harmoni Towers is buying a US telecommunications infrastructure business from Apollo’s second infrastructure fund for an undisclosed sum.
Harmoni, a portfolio company of Palistar Capital, said it has agreed to buy Parallel Infrastructure, a tower platform and build-to-suit provider from Apollo Infrastructure Opportunities Fund II (AIOF II).
Parallel Infrastructure owns a portfolio of operating cell towers and a pipeline of contracted towers under development.
Harmoni said the deal creates the fifth-largest tower company and the second-largest private independent tower company in the US, with more than 2,000 built and in-construction towers.
The combined company will have locations across 41 states, with the capacity to build hundreds of towers per year in all regions of the US.
Omar Jaffrey, managing partner and founder of Palistar Capital, said, “Palistar expects, over time, to deploy in excess of $1bn via equity and debt financing into the combined platform in order to promote the expansion of the business.
“Building upon our long-term view of the wireless ecosystem and the continued implementation of 5G and the explosive demand for data, this is a fantastic opportunity for Harmoni, Parallel, Palistar and our entire ecosystem of customers and vendors to provide a truly national footprint to deliver carrier-grade solutions.”
Lawrence Gleason, CEO of Harmoni Towers, said: “This transaction is a major milestone in Harmoni’s continued growth and evolution. It enables us to even better serve our carrier customers with an enhanced and fully scaled base of installed towers across the country, as well as provide one of the largest and most robust tower-building platforms in the United States.”
Yannis Macheras, CEO of Parallel Infrastructure, said: “Parallel is thrilled to be rolling into the Harmoni enterprise, lending its experience, talent and diverse portfolio to a new, enhanced organisation focused on providing best-in-class service to our customers and landowners.
“Both organisations collectively are excited about integrating and leveraging our complementary attributes, and quickly emerging as the highest standard for both tower development and ownership.”
AIOF II acquired Parallel in 2020. The disposal of Parallel represents the first realisation of the fund AIOF II.
Dylan Foo, co-head of infrastructure and partner at Apollo, said: “We are proud to announce this important transaction, which represents a successful exit for our second infrastructure fund and highlights our corporate carve-out expertise, as well as our commitment to communications infrastructure and enhancing connectivity in suburban and rural geographies.”
Dave Cohen, Partner at Apollo, said: “We have been extremely pleased with Parallel’s growth and performance since carving out and standing up the platform in 2020.
“We would like to thank the entire management team for their strong leadership and positive collaboration. We also wish them continued success in scaling the business and serving their carrier customers alongside Harmoni and Palistar.”
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