A $10 BILLION USD DEAL
American Tower Corporation has announced the close of its acquisition of CoreSite Realty Corporation following the completion of its previously announced offer of $10.1 billion in cash for all CoreSite’s outstanding shares of common stock, including the assumption and/or repayment of existing debt.
“We are thrilled to welcome CoreSite’s exceptional team to American Tower and are ready to work together to create long-term shareholder value,” said Tom Bartlett, Chief Executive Officer of American Tower.
“As 5G deployments and wireless and wireline convergence accelerate, we expect to leverage CoreSite’s highly interconnected data center facilities and critical cloud on-ramps to drive strong, consistent, recurring growth while enhancing the value of our existing tower real estate through emerging edge compute opportunities.”
With the close of this acquisition, American Tower now has ownership of CoreSite’s portfolio which as of Q3 2021 consisted of 25 data centers, 21 cloud on-ramps and over 32,000 interconnections in eight major U.S. markets.
As announced, the closing was funded by borrowings under American Tower’s credit facilities and term loans. American Tower however, completed the acquisition of CoreSite through a merger of one of its wholly owned subsidiaries with and into CoreSite. Also, the transaction is anticipated to be modestly accretive to American Tower’s AFFO per Share initially, and increasingly accretive over time.
“We are excited to partner with American Tower to expand its communications infrastructure ecosystem and accelerate its edge computing strategy through the addition of CoreSite’s differentiated portfolio of U.S. metro data center campuses,” Paul Szurek, Chief Executive Officer of CoreSite, stated in the previous announcement.
For this transaction, J.P. Morgan served as lead financial advisor to American Tower, who was also advised by CDX Advisors. Cleary Gottlieb Steen & Hamilton LLP served as principal legal advisor to American Tower. On the other hand, Evercore served as sole financial advisor to CoreSite and Wachtell, Lipton, Rosen & Katz served as its principal legal advisor.