Investment firms KKR and Associated Partners have struck a $100 million deal to build wireless infrastructure in the US that will improve connectivity in rural areas, reports The Wall Street Journal.

Sources said KKR will take minority investments in three businesses managed by Associated Partners, with more investment possible in the future.

The investment will mainly be used to upgrade hardware on rural mobile towers, with around $30 million set aside to acquire existing cell sites. KKR also plans to acquire royalty payment channels from businesses currently leasing cell sites.

Wireless coverage in rural areas is one of the areas that the US Federal Communications Commission (FCC) is working to improve, with Mignon Clyburn, acting FCC chairwoman, saying in May that the organisation wants to help smaller rural operators compete effectively against larger players.

Associated Partners is ramping up its activities to boost wireless services in rural areas and has carried out work for Verizon Wireless and AT&T.

KKR is using cash from its investment fund, which targets lower-risk deals with lower typical return than its corporate takeover activities. It was one of the firms linked with acquiring UK operator EE at the beginning of the year as part of a private equity consortia.