The Public Sector Pension Investment Board (PSP Investments) in Montreal partnered with EQT to complete the $3 billion acquisition of Radius Global Infrastructure.
The deal was done through EQT’s Active Core Infrastructure Fund. The take-private transaction will pay Radius stockholders $15 per share. Radius is a global aggregator of real property interests in underlying wireless telecommunications cell sites and other digital infrastructure assets.
“The acquisition of Radius provides PSP Investments with an important opportunity to further increase its exposure to core, high-quality digital infrastructure assets benefiting from inflation passthrough mechanisms,” said Patrick Samson, senior vice president and global head of Real Assets Investments at PSP, which has C$244 billion ($181 billion) in assets. “We are excited to partner with EQT who brings valuable expertise to help this partnership reach its full potential and we look forward to working closely with the experienced management team at Radius as the company embarks on its next phase of growth.”
Overall PSP has C$29 billion ($22 billion) allocated to infrastructure investments, which falls under the real assets umbrella alongside real estate and natural resources. Other investments in the past year have included C$1 billion ($742 million) in investments in Canadian hydroelectricity, wind and solar assets. With a return of 19%, infrastructure was the pension fund’s best performing asset class for fiscal year 2023.
At €224 billion ($239 billion) EQT, the Radius investment aligns with Sweden-based firm’s thematic investment approach and focus on partnering with best-in-class companies and management teams, said Alex Greenbaum, partner within EQT Active Core Infrastructure’s Advisory Team.
“We are excited to partner with the Radius team on this next stage of growth, as we capitalize on the growing global demand for data,” Greenbaum added.
Radius Global Infrastructure Co-Chairman and CEO Bill Berkman welcomed the transaction and new ownership. The company plans to grow its portfolio and expand its partnerships with its mobile network operator, tower company and telco tenants around the world, he said.
Morgan Stanley and Simpson Thacher & Bartlett served as financial and legal advisors, respectively, to EQT Active Core Infrastructure. Evercore and Weil, Gotshal & Manges served as financial and legal advisors, respectively, to PSP.
