The deal by the Swedish asset owner bags 115,000 small cells on air or under contract spread across 43 US states
Crown Castle has retrenched its business operations to being a towerco after signing a definitive agreement to sell all of its fibre segment, together with certain supporting assets and personnel, with EQT Active Core Infrastructure fund acquiring the small cells business and Zayo Group acquiring its fibre solutions business for $8.5 billion in aggregate, subject to the usual caveats.
Crown Castle’s Small Cells Solutions business builds and operates small cells nationwide, serving mobile densification needs for cellular carriers and EQT’s part of the transaction is worth around $4.25 billion. Crown Castle operates a nationwide portfolio of approximately 115,000 small cells on air or under contract spread across 43 states, serving the top three US mobile network operators. It also plays a role in providing capacity for high-demand areas lacking macro towers through its extensive network of small cells.
“Small cell networks are an essential part of the digital infrastructure ecosystem,” said head of EQT’s Active Core Infrastructure Advisory team and partner Alexander Greenbaum. “This investment is a natural fit within EQT Active Core Infrastructure’s strategy – investing behind long-term contracted, core infrastructure assets with strong growth potential. With EQT’s deep experience in digital infrastructure and active approach to value creation, we see significant opportunity to support the company’s continued growth.”
“Crown Castle’s Small Cells Solutions business is a platform at the heart of the next generation of digital infrastructure, enabling essential digital connectivity that will help power the future,” said EQT Infrastructure Advisory team partner Nirav Shah. “With its significant scale, operational excellence, and deep carrier relationships, the company is poised to benefit from positive digital tailwinds.”
He added: “We look forward to partnering with the business to help fuel its next phase of growth, drive cutting-edge innovation, and support the long-term expansion of critical digital infrastructure.”
EQT reckons the company has a “strong foundation” of long-term contracts, operational expertise, and “deep-rooted carrier relationships”. The asset manager said it will support the company through its next phase of growth by utilising its global scale and significant experience to strengthen its asset base and further deepen its relationships with leading mobile network operators.
Wider deal
As part of the transaction, the EQT Active Core Infrastructure fund will acquire Crown Castle’s Small Cells Solutions business, while Zayo, backed by the EQT Infrastructure IV fund and DigitalBridge, will independently acquire Crown Castle’s Fibre Solutions business. As part of the deal, Zayo and the Small Cells business will enter into a long-term commercial agreement where Zayo will provide fibre to the Small Cells business. The transaction is expected to close in the first half of 2026. TD Securities served as sole financial advisor and Kirkland & Ellis as legal advisor to EQT in connection with the transaction.
With the Crown Castle assets, Zayo reckons it will provide enterprises with improved access to the networks, adding approximately 90,000 route miles of fibre to its network and increasing its overall reach to more than 70,000 on-net locations. “We are strategically investing in expanding and enhancing our country’s critical network infrastructure to meet the demands of hyperscalers, data centres, enterprises and carriers that will facilitate the growing AI economy,” said Zayo CEO Steve M. Smith.
“This acquisition strengthens our ability to deliver the reliable, low-latency, high-capacity fibre solutions our customers need to scale in an increasingly data-driven world, and furthers our commitment to providing world class customer service and solutions,” he added.
“As AI reshapes industries and accelerates economic transformation, this transaction underscores the vital nature of fibre and the critical role it plays as the backbone of innovation, productivity and market growth,” said DigitalBridge CEO Marc Ganzi. “With Crown Castle’s robust metro-focused assets, Zayo will be well-positioned to fuel AI adoption, enhance connectivity solutions and accelerate technological progress.
Strategic review
For Crown Castle, the deal concludes its strategic review of its business as it looks to refocus on purely towerco operations. In its fourth quarter and full year 2024 results, it managed 4.5% organic growth and in 2025, it expects a consistent level of activity with organic growth of 4.5% in towers – excluding the impact of Sprint consolidation churn – and it anticipates lease and amendment applications to increase year-over-year as its customers continue to add capacity to their 5G networks to meet the persistent growth in mobile data demand in the US.
The company expects its 2025 adjusted funds from operations (AFFO) to be approximately $1.8 billion, with growth now projected to reach $2.3 billion post-transaction.
