Cellular communications company acquires 800 towers in Brazil

December 31, 2012
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Cell Towers in Brazil

Low-interest rates in the United States have allowed businesses – particularly a number of cellular tower companies – to expand their reach domestically and abroad. SBA Communications, headquartered in Florida, has now thrown its hat into the ring, acquiring 800 towers from Telefonica Brazil S.A., a leading local wireless carrier, for $178 million.

For SBA, the acquisition represents its first expansion of operations into Brazil. For Brazilians, the purchase could help boost the country’s telecommunications infrastructure leading up to the World Cup and Olympics – two world-wide spectacles that Brazil will host in the next four years. In light of Telefonica’s ongoing financial struggles, this acquisition should be of benefit to all who rely on those towers to communicate.

“This acquisition provides us with a national footprint of high quality towers, including leasing arrangements with all of the major broadband wireless providers, and establishes us as a substantial independent tower owner in an attractive and high growth market,” said SBA president Jeffrey Stoops.

The intricacies of mergers and acquisitions involving Brazil-based companies

As SBA executives no doubt discovered, the acquisition of a business operating in Brazil involves a number of legal concerns. They likely sought counsel from a Brazilian law firm to ensure that they navigated this potential legal minefield properly.

Brazilian lawyers not only understand the local market, they will help you to understand and mitigate the risks of business acquisitions, mergers or investments, so that you make a decision that is best for your business. A Brazilian law firm is your ally. Without one, you could agree to a deal that is not best-suited to your needs.

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