Telefónica has sold a 40 percent stake in its Telxius arm to private equity firm KKR for €1.275 billion.
Telxius owns and operates nearly 16,000 telecommunications towers in five countries.
It also manages 65,000 kilometers of submarine fibre optic cables, of which around 31,000 kilometers are owned by Telxius.
KKR will acquire 24.8 percent of the infrastructure business’s shares initially, with an option to acquire the remaining 15.2 percent.
The announcement comes five months after Telefónica canned an IPO for Telxius as potential investors offered less than the telco valued it at.
The Spain-based operator said KKR’s offer met its valuation for the business, albeit towards the lower end of the price range it set last September.
Guillermo Ansaldo, chairman of Telxius said: “Our vision for Telxius is to capitalize on the exponential increase in data traffic forecast for the coming years by offering a first-class network in Europe and the Americas.
“We are delighted to have KKR on board as a long-term investment partner.
“We believe their solid track-record on the infrastructure business will help us achieving our common goals.”
Jesus Olmos, Member & Global Co-Head of Infrastructure and Head of Spain at KKR, added: "We are confident that the exploding demand for mobile data, driven by the rise in 4k and virtual reality content, together with the need for reliable internet infrastructure will help drive strong growth in the business."
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