American Tower Closes USD 10.1bn Acquisition of Data Center Campuses Firm CoreSite.

M2 EQUITYBITES-December 29, 2021-American Tower Closes USD 10.1bn Acquisition of Data Center Campuses Firm CoreSite


US-based real estate investment trust American Tower Corp. (NYSE: AMT) has closed the acquisition of US-based data center campuses company CoreSite Realty Corp. (NYSE: COR) for USD 170 per share in cash for a total consideration for the transaction for approximately USD 10.1bn, the company said.

American Tower, through a wholly owned subsidiary, launched a tender offer for all of the shares of common stock of CoreSite, which was followed by a merger to acquire any untendered shares for the same price payable in the tender offer.

The transaction is expected to create a differentiated, comprehensive and interconnected communications real estate platform optimally positioned to benefit from the convergence of wireline and wireless networks amid accelerating global 5G deployments.

CoreSite, which as of Q3 2021 consisted of 25 data centers, 21 cloud on-ramps and over 32,000 interconnections in eight major US markets, generated annualized revenue and Adjusted EBITDA of USD 655m and USD 343m, respectively, in 3Q21.

CoreSite has averaged double-digit annual revenue growth over the past five years and is led by a seasoned management team that has established leading positions and a critical presence with cloud service providers, positioning the business for future organic growth.

American Tower expects to leverage its financial position to further accelerate CoreSite's attractive development pipeline in the US, while also evaluating the potential for international expansion in the data center space.

The transaction is also expected to be transformative for American Tower's mobile edge compute business in advance of the proliferation of 5G low-latency applications...

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