The Caisse de dépôt et placement du Québec is acquiring a 30 per cent stake in a subsidiary of U.S. communications infrastructure firm Vertical Bridge Holdings.
Established in 2014, Vertical Bridge currently has more than 266,000 sites, including 16,000 towers it owns or master leases. The firm intends to use the investment to prepare for 5G deployment by growing its portfolio of broadband and broadcast towers, small cells, real estate and other wireless infrastructure assets, according to a press release.
“With this acquisition, we expand our exposure to telecommunications infrastructure by partnering with a first-class operator strategically positioned in the market and that brings a wealth of knowledge of the industry,” said Emmanuel Jaclot, executive vice-president of infrastructure at the Caisse.
The investment comes at the same time as a report from the Cellular Telecommunications Industry Association, which noted the U.S. is leading the world in the global 5G race to deployment and spectrum allocation due to recent actions by the country’s government officials and carriers.
According to the CTIA, the U.S. is expected to have 92 commercial 5G deployments by the end of 2019, and has allocated the highest amount of low- and high-band spectrum for 5G globally.
With its investment in Vertical Bridge, the Caisse is joining other long-term investors, including Goldman Sachs Infrastructure Partners, Stonepeak Infrastructure Partners, Digital Bridge Holdings and the Jordan Co.