Apollo Global Management (NYSE: APO) announced Tuesday that they have acquired a US telecommunications platform from Sydney-headquartered global property investor and developer, Lendlease.
The platform includes a portfolio of operating cell towers and a pipeline of contracted towers under development. The acquired company will rebrand itself as Parallel Infrastructure, the same name it held prior to being acquired by Lendlease in 2017. Parallel Infrastructure will be led by CEO Yannis Macheras and its management team from its headquarters in Charlotte, North Carolina.
Parallel Infrastructure is a leading build-to-suit tower operator with nearly 500 macro cell towers across the US and several hundred more under contract or in late-stage development. The Company counts all major US wireless carriers as customers, including AT&T, Verizon and T-Mobile, which lease space on towers under long-term contracts.
“Parallel Infrastructure is an established, critical infrastructure business that’s positioned for significant growth driven by increased data consumption and the continued shift to 5G networks across the United States,” said Dylan Foo, Senior Partner and Co-Head of Infrastructure at Apollo. “Our corporate carve-out experience was critical to the transaction and setting the business up for future growth.”
Commenting on the acquisition, CEO Yannis Macheras said: “We’re thrilled to work with Apollo to grow our infrastructure portfolio. Dylan and the team have a track record of creating long-term value in the infrastructure asset class, and we believe their support will accelerate our strategy and add to the toolkit of what we can offer to our customers.”
“Since the original acquisition, Lendlease has scaled this platform to over 450 towers, and we are very pleased that Parallel Infrastructure will be given the opportunity for continued growth under Apollo Funds’ ownership and the leadership of the existing management team,” said Jason Alderman, Managing Director, Property at Lendlease. “We look forward to recycling the capital into our growing US development and investment businesses.”
Apollo’s David Cohen added: “We’re excited to support Parallel Infrastructure and its experienced management team in this next phase of growth, as the Company continues to serve as a trusted partner to carriers building out their wireless networks across the nation. This investment underscores the increasing importance of enabling wireless connectivity across communities of all sizes and geographies.”
The acquisition builds upon Apollo’s 30-year track record in which Apollo-managed funds have invested more than $20bn in infrastructure-related opportunities across its platform. Apollo’s infrastructure business is currently investing out of its second dedicated infrastructure fund. The infrastructure team is led by Senior Partners Dylan Foo and Geoff Strong, and focuses on opportunities in communications, power and renewables, transportation and midstream energy.
J.P. Morgan acted as financial advisor and Weil, Gotshal & Manges as legal advisor to Apollo Funds.
Morgan Stanley & Co. LLC acted as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal advisor to Lendlease.
As of 30 June 2020, Apollo had assets under management of approximately $414bn, in credit, private equity and real assets funds invested across a core group of nine industries.