Tower operator Cellnex is selling its French data center business.

Cellnex, through its wholly owned subsidiary Cellnex France, this week announced it has entered into a put option agreement with Vauban Infra Fibre (VIF) to sell 99.99 percent of Towerlink France, the entity responsible for the group’s main data center operations in France.

The all-cash deal would be valued at €391 million ($457.6m).

VIF is a French company backed by funds from Vauban Infrastructure Partners, entities of Crédit Agricole Assurances, and Raffles, a subsidiary of GIC. It operates fiber networks across France.

Founded in 2018, Towerlink is the owner, operator, and developer of urban Edge data centers, with a presence across multiple sites in France.

Details of the facilities included in the deal weren’t clear. On its website, Cellnex says it has more than 100 Edge data centers across France operated through its NexLoop unit.

According to NexLoop’s website, around 80 of 130 planned facilities have been deployed across the country. The deployed sites currently total 1,140 sqm (12,2709 sqm) and 362kW, with another 546 sqm (5,875 sq ft) and 314kW under construction​. Deployed locations include Lille, Strasbourg, Paris, Quimper, Nantes, Bordeaux, Lyon, Grenoble, Marseille, and Nice.

News that Cellnex was planning to sell its French data center assets surfaced last year. The company said the planned divestment allows the group to focus on its core business areas.

“We remain committed to operational excellence and disciplined capital allocation, always with the objective of delivering sustainable growth and long-term value for our shareholders,” said Marco Patuano, CEO of Cellnex.

VIF said the deal would strengthen its position in the French market and diversify its base of digital infrastructure. It would also reinforce the company’s partnership with Bouygues Telecom, Towerlink’s main client.

Steve Ledoux, CEO of VIF, added: “VIF is pleased to negotiate this investment in line with our investment strategy. Towerlink will thrive within VIF by continuing to deliver our common ambition and accelerate our development in the data center market, and by implementing attractive synergies with other French data centers and digital assets of the portfolio. We look forward to supporting the company in deploying a high-quality portfolio of assets throughout France.”

Cellnex was advised by BBVA and CACIB as M&A advisor, HSFK as legal advisor and tax advisor, and Analysys Mason as commercial advisor. Vauban Infra Fibre was advised by Nomura as M&A and debt advisor, Clifford Chance Europe LLP as legal advisor, Altman Solon as commercial and technical advisor, Eight Advisory as financial and tax advisor, and Marsh as insurance advisor.

Tower firm Cellnex manages a portfolio of more than 110,000 sites across ten European countries. Its footprint includes sites in Spain, France, the United Kingdom, Italy, and Poland. Cellnex also operates a number of data center sites in Spain and 24 high telecom & data towers throughout the Netherlands – plus a larger Dutch data center at the media park in Hilversum.

Vauban Infrastructure Partners is an infrastructure asset manager focused on the European infrastructure mid-market segment, and has raised approximately €10 billion ($11.7bn) across eight infrastructure funds. Its data center investments include Icelandic operator Borealis.

VIF manages more than 13 million FTTH connectable lines through 25 assets across rural, urban, and medium-density areas.

Gwenola Chambon, founding partner of Vauban Infrastructure Partners, added: “VIF’s proposed investment in Towerlink confirms our strong commitment to finance infrastructure assets that are essential to the development of local communities, alongside with our historical partners.”