GO and BMIT have announced that the sale of the major telecoms company’s cell tower network to its subsidiary, first announced in August and approved by BMIT shareholders in September, is now complete.

For a consideration of €46.6 million, BMIT has taken over 278 sites making up the passive telecoms assets necessary for GO’s mobile network to function.

The deal includes an employee responsible for managing the sites being transferred from one company to the other, with BMIT now also responsible for maintaining the cell towers and providing GO with hosting and co-location services for an initial thirty-year period, to be automatically renewed for further periods of five years unless otherwise agreed between the parties in writing.

The cell towers in question are passive structures comprising of items such as beam reinforcements, poles, counter-balances and stays, placed on rooftops or ground of third party commercial or residential premises, for which GO is currently liable for lease payments.

BMIT and GO have also entered into a transitional services agreement pursuant to which GO shall provide certain support services to the BMIT in respect of the cell tower network during the initial transition period lasting 12 months.

For GO, the transaction means it can reduce its operational burden, allowing it to focus its efforts more intently on its core business. A spokesperson for the company told WhosWho.mt that the cash proceeds from the transaction will allow GO to continue to invest in its technology, products and services to deliver a better customer experience “in line with its purpose to drive a digital Malta where no one is left behind”.

As for BMIT, “intense competition” in its original data hosting market from cloud-based services has threatened its profit margins and led it to accelerate plans to diversify its lines of business. This involves a transformation into a managed hybrid IT provider and strengthening its cybersecurity portfolio, wherein it aims to offer enhanced managed solutions, consulting, technical advisory and support services.

Another element of this diversification strategy is through an investment in infrastructure to reinforce BMIT Technologies’ position as one of Malta’s leading technology platforms and solutions providers, with its acquisition of GO’s cell tower network positioning the company as a Maltese “InfraCo” (infrastructure company) backed by long-term, contracted revenues.