Harmoni Towers to acquire Parallel Infrastructure from Apollo’s second flagship infrastructure fund
Little Rock, United States – Harmoni Towers, a portfolio company of Palistar Capital LP, an alternative asset manager focused on mission-critical communications infrastructure, has agreed to acquire Parallel Infrastructure, a tower platform and build-to-suit provider, from funds managed by affiliates of Apollo Global Management, Inc., Terms were not disclosed. The transaction is subject to customary closing conditions and is expected to be completed in the third quarter of 2022.
The transaction reportedly creates the fifth largest tower company and the second largest private independent tower company in the U.S., with more than 2,000 built and in-construction towers. The combined company will have locations spanning the country from coast-to coast across 41 states, with the capacity to build hundreds of towers per year in all
regions of the U.S.
In 2020, Apollo acquired Parallel through a corporate carve-out transaction via its second flagship infrastructure fund (AIOF II). As part of its value creation plan, Apollo stood up the business as an independent tower platform, and approximately doubled its size during the following two years. The sale of Parallel represents the first realisation of AIOF II.
Harmoni is one of the most active tower builders in the U.S., with over 1,000 sites constructed or in development. Harmoni owns, operates, and builds mission-critical communications infrastructure and is focused on the acquisition and construction of communication networks. Parallel, based in Charlotte, North Carolina, designs, builds, owns and manages critical telecommunications infrastructure, including a cell tower portfolio of about 1,000 sites, for service providers of all sizes in partnership with property owners and industry vendors.
Omar Jaffrey, managing partner and founder of Palistar, says, “Palistar expects, over time, to deploy in excess of [$1 billion (€1.00 billion)] via equity and debt financing into the combined platform in order to promote the expansion of the business. Building upon our long-term view of the wireless ecosystem and the continued implementation of 5G and the explosive demand for data, this is a fantastic opportunity for Harmoni, Parallel, Palistar and our entire ecosystem of customers and vendors to provide a truly national footprint to deliver carrier-grade solutions. The team at Apollo have been excellent stewards of the Parallel business and we are delighted to have partnered with them on this transaction.”
Lawrence Gleason, CEO of Harmoni Towers, states: “This transaction is a major milestone in Harmoni’s continued growth and evolution. It enables us to even better serve our carrier customers with an enhanced and fully scaled base of installed towers across the country, as well as provide one of the largest and most robust tower building platforms in the United States. Parallel is a world-class organisation and we could not be more excited about this acquisition.”
Yannis Macheras, CEO of Parallel Infrastructure, adds: “Parallel is thrilled to be rolling into the Harmoni enterprise, lending its experience, talent and diverse portfolio to a new, enhanced organisation focused on providing best-in-class service to our customers and landowners. Both organisations collectively are excited about integrating and leveraging our complementary attributes, and quickly emerging as the highest standard for both tower development and ownership.”
Dylan Foo, co-head of infrastructure and partner at Apollo, says: “We are proud to announce this important transaction, which represents a successful exit for our second infrastructure fund and highlights our corporate carve-out expertise, as well as our commitment to communications infrastructure and enhancing connectivity in suburban and rural geographies.”
Dave Cohen, partner at Apollo, comments: “We have been extremely pleased with Parallel’s growth and performance since carving-out and standing up the platform in 2020. We would like to thank the entire management team for their strong leadership and positive collaboration. We also wish them continued success in scaling the business and serving their carrier customers alongside Harmoni and Palistar.”
Palistar and Hamoni were advised by Kirkland & Ellis LLP, while Apollo and Parallel were advised by Weil, Gotshal & Manges LLP.