Global digital infrastructure investment firm DigitalBridge Group has agreed to acquire Japan's infrastructure-sharing company JTower, with the aim of taking the company private. The board of JTower has expressed support for the offer and recommended that shareholders tender their shares. DigitalBridge Group, through its subsidiary DB Pyramid Holdings, announced a tender offer to acquire JTower, the official release said on Wednesday.
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Addressing Challenges
This acquisition comes as Japan's telecommunications industry faces increasing challenges, including the deployment of Beyond 5G and 6G technologies, expanding coverage to remote and disaster-prone areas, and maintaining infrastructure with limited resources amid a declining population, JTower explained.
JTower, which specialises in indoor and outdoor infrastructure sharing, views this partnership as crucial for its long-term growth, which is also essential for the development of the telecommunications industry.
Expansion Plans Post-Acquisition
By going private under DigitalBridge, JTower aims to secure the capital needed for future investments without the constraints of the public market. DigitalBridge has committed to providing the necessary equity to support JTower's expansion, allowing the company to respond flexibly to funding needs and accelerate its growth in the infrastructure-sharing market, the tower company said.
The Company has decided to strengthen its management base by adding DigitalBridge as our new partner to contribute to the development of the Japanese telecommunications industry, the official release said.
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Continued Partnerships
JTower also confirmed that it will continue to maintain its business relationships with existing capital and business alliance partners Nippon Telegraph and Telephone Corporation, NTT Docomo, and KDDI even after the consummation of the tender offer.
Through the execution of the tender offer, JTower aims to further expand its business by maximising the use of DigitalBridge's capital, global industry knowledge, and network to enhance its corporate value.
DigitalBridge is a global-scale digital infrastructure investment firm based in the US, with approximately USD 84.5 billion in assets under management globally.
