BUENOS AIRES, Argentina – ATIS Group, a leading digital infrastructure provider in Latin America, has announced the signing of a definitive agreement with Millicom (NASDAQ: TIGO) to acquire Lati Paraguay, Millicom's telecommunications tower subsidiary in Paraguay. The deal, finalized on April 26th and recently made public, will see ATIS Group acquire approximately 300 wireless communication towers, significantly boosting its strategic expansion in the Southern Cone region of South America.

This acquisition marks a crucial step for ATIS Group in establishing a strong foothold in Paraguay's key telecommunications infrastructure market, paving the way for future growth and expansion of its service offerings.

In line with standard practice for such transactions, ATIS Group and Tigo Paraguay, Millicom's local mobile operator, have concurrently entered into a long-term leaseback arrangement. This agreement ensures that Tigo Paraguay can continue uninterrupted operation of its mobile network, leasing the acquired tower infrastructure from ATIS Group. The final number of towers included in the leaseback agreement will be determined upon the closing of the transaction, which both companies anticipate will occur in the near term.

Juan Pablo Blanco, CEO of ATIS Group, emphasized the company's strategic focus, stating, "ATIS seeks to develop, own, and operate best-in-class mission-critical assets such as wireless telecommunications towers." He further added, "This acquisition – along with prior ones from Telefónica Uruguay and SBA in Argentina – underscores ATIS' commitment to the Southern Cone region of Latin America. This important agreement with Tigo is in line with our strategy of long-term partnerships with leading wireless communications operators in the region."

 Since its majority acquisition by Towerco Investments LLC in 2022, ATIS Group has experienced rapid growth, expanding its managed sites from 185 in Argentina to over 1,000 across Argentina, Uruguay, and now Paraguay. This aggressive acquisition strategy highlights ATIS Group's ambition to become a dominant player in the South American digital infrastructure market.

ATIS Group's South American Strategy and Outlook

The acquisition of Lati Paraguay is more than just an increase in tower count for ATIS Group; it represents a strategic move into a promising South American market. Paraguay boasts a relatively stable economic growth rate and significant potential in its mobile telecommunications sector. ATIS Group anticipates leveraging this acquisition to capitalize on future growth opportunities, including the deployment of 5G networks.

The long-term lease agreement with Tigo Paraguay will provide ATIS Group with a stable revenue stream and foster a strong collaborative relationship with a key local operator. This partnership is expected to create a favorable foundation for ATIS Group to pursue additional business opportunities within the Paraguayan market.

ATIS Group's proactive expansion in South America reflects a broader strategy to secure new growth engines amidst increasing competition in the global digital infrastructure market. The South American region, with its accelerating digital transformation, presents a significant growth opportunity for telecommunications infrastructure. ATIS Group's early investment aims to establish a strong market presence and secure long-term growth.

Millicom's Business Restructuring and Strategic Direction

Conversely, Millicom's sale of Lati Paraguay indicates a shift in its long-term business strategy. While a major provider of mobile and fixed telecommunications services in South America, Millicom has been streamlining its operations in recent years, focusing on core businesses and divesting non-core assets. The sale of its Paraguayan tower business aligns with this strategic direction.

Millicom anticipates minimal disruption to its existing network operations due to the long-term leaseback agreement with ATIS Group. The funds generated from the sale are likely to be reinvested in core business areas or used to reduce debt, thereby strengthening its financial structure. This strategic decision is seen as a move to establish a sustainable growth foundation in the increasingly competitive South American telecommunications market.

Shifting Competitive Landscape in South American Digital Infrastructure

ATIS Group's acquisition is poised to influence the competitive dynamics of the South American digital infrastructure market. By extending its footprint into Paraguay, following its presence in Argentina and Uruguay, ATIS Group is rapidly emerging as a key digital infrastructure provider in the region. This expansion is expected to intensify competition with existing market leaders and potentially drive further growth and innovation within the South American digital infrastructure sector.

As the deployment of 5G networks gains momentum, securing stable telecommunications tower infrastructure will be a critical competitive advantage for digital infrastructure providers. ATIS Group's proactive investment positions it favorably to capitalize on future opportunities in the South American market.

In conclusion, ATIS Group's acquisition of Lati Paraguay represents a significant step in its South American expansion strategy. Coupled with Millicom's business restructuring, this transaction is expected to bring about new dynamics in the regional digital infrastructure market. The future growth trajectory of ATIS Group in South America and the responses of its competitors will be closely watched.