(By Balachander) SBA Communications Corp. (NASDAQ: SBAC) began operations in Brazil with the acquisition of 800 freestanding wireless towers for R$362.8 million ($177 million).
The company said it acquired these assets from one of the "leading" broadband wireless carriers in Brazil.
SBA expects these assets will produce roughly $19 to $23 million Brazilian Real in Tower Cash Flow for the full calendar year 2013 and immediately add to AFFO per share.
"This acquisition provides us with a national footprint of high quality towers... and establishes us as a substantial independent tower owner in an attractive and high growth market," commented SBA CEO Jeffrey Stoops.
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SBA generates revenue from two primary businesses - site leasing and site development services. Its primary focus is the leasing of antenna space on its multi-tenant towers to a variety of wireless service providers under long-term lease contracts.
The company also owns and operates towers in Canada, Costa Rica, El Salvador, Guatemala, Nicaragua and Panama.
The stock, which has been trading in the 52-week range of $41.88 to $70.98, fell 1.03 percent to trade at $70.01 on Wednesday.