Global digital infrastructure investment firm DigitalBridge Group has agreed to acquire Japanese company infrastructure-share company JTower, with the aim of taking the company private. JTower's board of directors has expressed support for the offer and recommended that shareholders tender their shares. DigitalBridge Group, through its subsidiary DB Pyramid Holdings, has announced a public offer to acquire JTower, the official press release said on Wednesday.
Also read: JTower and NTT Docomo deploy glass antennas for 5G infrastructure sharing
Tackling challenges
This acquisition comes at a time when Japan’s telecommunications sector is facing increasing challenges, including deploying Beyond 5G and 6G technologies, expanding coverage to remote and disaster-prone areas, and maintaining infrastructure with limited resources amid a declining population. JTower explained.
JTower, which specializes in sharing infrastructure indoors and outdoors, sees this collaboration as crucial for its long-term growth. It is also essential for the development of the telecommunications sector.
Expansion plans after the takeover
By going private under DigitalBridge, JTower aims to secure the capital it needs for future investments without the constraints of the public market. DigitalBridge has committed to providing the equity it needs to support JTower’s expansion, allowing the company to flexibly respond to financing needs and accelerate its growth in the infrastructure sharing market, the tower company said.
The company has decided to strengthen its management base by adding DigitalBridge as a new partner to contribute to the development of Japan's telecommunications industry, according to the official press release.
Also read: NTT Docomo Transfers Ownership of 1,552 Towers to JTower
Ongoing partnerships
JTower also confirmed that it will continue to maintain its business relationships with existing capital and business alliance partners Nippon Telegraph and Telephone Corporation, NTT documentand KDDI even after the completion of the public offering.
By executing the public offer, JTower aims to further expand its activities by making optimal use of DigitalBridge's capital, global sector expertise and network to increase its corporate value.
DigitalBridge is a global digital platform infrastructure investment firm based in the US, with approximately $84.5 billion in assets under management worldwide.
