SBA Communications to buy Optasite

SBA said that its recently formed subsidiary will merge with Optasite, and that entity will become an SBA subsidiary.

When the deal closes, SBA will issue Optasite sellers 7.25 million shares of SBA common stock and take on Optasite's fully drawn $150 million senior credit facility. SBA will also absorb $25 million in additional liabilities from Optasite, which it expects to pay in cash as the deal closes.

SBA plans to pay the cash portion of the deal with existing cash funds.

The company expects the deal to close on or prior to Sept. 30, and expects it to immediately benefit its equity free cash flow per share. SBA estimates Optasite will be generating annualized site leasing revenue of $29 million to $30 million and annualized tower cash flow of $22.5 million and $23.5 million when the transaction closes.

SBA shares rose 53 cents to $35.45 in morning trading.