By Mauro Orru

Cellnex Telecom SA said Friday that it has reached an agreement with Polish media and telecommunications group Cyfrowy Polsat SA to buy its subsidiary Polkomtel Sp zoo for an initial investment of around 1.6 billion euros ($1.95 billion) in a deal that is set to bolster its reach in the country.

The Spanish wireless-telecommunications company said it expects to pay in cash for 99.99% of Polkomtel, which manages around 7,000 telecom sites in Poland, with approximately 11,300 kilometers (7,021 miles) of fiber and a network of microwave radio links.

On top of the initial investment, the agreement includes a capital-expenditure program of up to EUR600 million to deploy up to 1,500 new sites by 2030, Cellnex said.

The acquisition is the latest in a series of deals for Cellnex, which in early February agreed to buy telecoms-tower company Hivory and nearly 10,500 telecommunications sites it owns in France.

The company also reached an agreement with Deutsche Telekom AG in January to merge their Dutch mobile communications infrastructure companies and, in November 2020, it agreed to buy the European tower businesses and assets of Hong Kong-listed conglomerate CK Hutchison Holdings Ltd.

Cellnex said the latest deal should create annual revenue of around EUR280 million, adjusted earnings before interest, taxes, depreciation, and amortization of about EUR190 million and a recurring levered free cash flow of around EUR80 million one year upon completion of the transaction.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

02-26-21 0505ET