Swedish asset manager EQT has finalized a definitive agreement to acquire Crown Castle’s Small Cells Solutions business for $4.25 billion. The deal is part of a broader $8.5 billion transaction in which Zayo Group will acquire Crown Castle’s Fibre Solutions business.
Strategic Refocus for Crown Castle
This acquisition marks Crown Castle’s shift back to a tower-only business model, selling off its entire fiber segment along with related assets and personnel. EQT’s purchase includes approximately 115,000 small cells that are currently operational or under contract across 43 U.S. states. These assets are critical to supporting mobile network densification and addressing capacity demands in areas lacking macro towers.
“Small cell networks are an essential part of the digital infrastructure ecosystem,” said Alexander Greenbaum, head of EQT’s Active Core Infrastructure Advisory team. “This investment aligns with our strategy of backing long-term, contracted infrastructure assets with strong growth potential.”
Nirav Shah, a partner at EQT’s Infrastructure Advisory team, added, “Crown Castle’s Small Cells Solutions business is at the core of next-generation digital infrastructure, providing vital connectivity that will shape the future.” EQT plans to leverage its global expertise and significant resources to support the company’s next phase of growth.
Wider Transaction Details
As part of the deal, Zayo—backed by EQT Infrastructure IV fund and DigitalBridge—will acquire Crown Castle’s Fibre Solutions business. The transaction will also establish a long-term commercial agreement under which Zayo will provide fiber infrastructure to the Small Cells business.
Zayo anticipates that this acquisition will enhance its enterprise network capabilities, adding approximately 90,000 route miles of fiber and extending its reach to over 70,000 on-net locations.
“This acquisition strengthens our ability to deliver reliable, low-latency, high-capacity fiber solutions,” said Zayo CEO Steve M. Smith. “We are strategically investing in critical network infrastructure to support the rising demands of hyperscalers, data centers, enterprises, and carriers, particularly in the growing AI economy.”
DigitalBridge CEO Marc Ganzi emphasized the importance of fiber infrastructure in the modern digital economy, stating, “As AI transforms industries, Zayo’s expanded network will be instrumental in driving innovation, connectivity, and economic progress.”
Future Outlook for Crown Castle
For Crown Castle, the divestiture aligns with its strategic refocus on tower infrastructure. In its Q4 and full-year 2024 earnings report, the company recorded 4.5% organic growth and expects similar growth in 2025. Excluding Sprint-related churn, Crown Castle anticipates increasing lease and amendment applications as mobile carriers expand 5G network capacity.
Following the completion of these transactions, Crown Castle projects its adjusted funds from operations (AFFO) to reach approximately $2.3 billion, up from $1.8 billion in 2025.
Transaction Timeline and Advisory Roles
The transaction is expected to close in the first half of 2026, subject to regulatory approvals and customary closing conditions. TD Securities acted as the sole financial advisor to EQT, while Kirkland & Ellis served as its legal counsel.
This acquisition underscores the growing demand for digital infrastructure investments as mobile network operators continue expanding 5G coverage and capacity. EQT and Zayo’s strategic moves position them at the forefront of this evolving landscape, reinforcing their roles as key players in the digital connectivity ecosystem.
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