Spark New Zealand's independent tower unit Connexa has agreed a deal to acquire 2degrees’ passive infrastructure.

The deal is worth NZ $1.1 billion ($701.6m) and covers infrastructure across the country.

The deal sees Connexa scoop 1,124 towers from NZ telco 2degrees, with the seller entering a 20-year agreement with Connexa (plus rights of renewal) to secure access to existing and new towers.

This transaction also includes a commitment to build and co-location 450 sites over the next decade.

Connexa now operates as an independent unit from Spark NZ, after the operator sold a 70 percent stake in Spark’s passive mobile infrastructure assets to the Ontario Teachers’ Pension Plan in July 2022. The transaction was only finalized in October 2022 for NZ $900m ($573m).

In a statement Spark, NZ CEO Jolie Hodson said: “We believe that the addition of 2degrees’ passive mobile tower assets into Connexa will deliver greater operational efficiencies that will support more infrastructure sharing, better network economics, and faster deployment of new digital infrastructure across Aotearoa."

However, Spark NZ also confirmed that it will not provide equity to the acquisition, with its shareholding in Connexa diluting from 30 percent down to 17 percent.

The deal is still subject to approval from New Zealand’s Commerce Commission and the Overseas Investment Office. It is expected to be completed by midway through next year.

Formerly known as NZ Communications and Econet Wireless, 2degrees launched in 2009 and offers mobile and broadband services across New Zealand. Earlier this year it merged with Vocus NZ.

2degrees is owned by Voyage Australia Pty Limited and is part of its Vocus Group; it was previously owned by US-based Trilogy International Partners.