GAINING 25 DATA CENTERS ACROSS 8 US MARKETS
Data center and cloud service provider CoreSite Realty Corporation, has just entered into a definitive agreement through which it will be acquired by American Tower Corporation.
In this transaction, American Tower will acquire CoreSite for approximately $10.1 billion in cash, including the assumption and/or repayment of CoreSite’s existing debt at closing, thereby, offering $170.00 per share.
With this acquisition, American Tower will gain 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. Through the operation of these facilities, CoreSite reports that it generated annualized revenue and Adjusted EBITDA of $655 million and $343 million, respectively, in Q3 2021.
“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,” said Paul Szurek, Chief Executive Officer of CoreSite.
“The combined company will be ideally positioned to address the growing need for convergence between mobile network providers, cloud service providers, and other digital platforms as 5G deployments emerge and evolve. In addition, we expect the enhanced scale and further geographic reach to provide a platform for the combined company to accelerate its growth trajectory and expand into additional U.S. metro areas, as well as internationally, leveraging American Tower’s extensive presence across the globe.”
Under the terms of the acquisition agreement, American Tower, through a wholly owned subsidiary, will commence a tender offer for all of the shares of common stock of CoreSite, which will be followed by a merger to acquire any untendered shares for the same price payable in the tender offer.
“We are in the early stages of a cloud-based, connected and globally distributed digital transformation that will evolve over the next decade and beyond. We expect the combination of our leading global distributed real estate portfolio and CoreSite’s high quality, interconnection-focused data center business to help position American Tower to lead in the 5G world,” said Tom Bartlett, Chief Executive Officer of American Tower.
“As the convergence of wireless and wireline networks accelerates and classes of communications infrastructure further align, we anticipate the emergence of attractive value creation opportunities within the digital infrastructure ecosystem. We look forward to welcoming CoreSite’s talented team to American Tower and working together to capitalize on those opportunities to drive enhanced long-term value creation for our customers and shareholders as we continue to connect billions of people across the globe.”
As announced by both parties, the transaction was unanimously approved by their boards of directors.