American Tower and CoreSite announced that the two companies have entered into a definitive agreement to acquire CoreSite for $170.00 per share in cash. The total consideration for the transaction is approximately $10.1 billion, including the assumption and repayment of CoreSite’s existing debt. The company expects to create a differentiated, comprehensive, and interconnected communications real estate platform with the acquisition.
$170.00 per share
CoreSite currently has 25 data centers, 21 cloud on-ramps, and over 32,000 interconnections in eight U.S. markets. The company generates annualized revenue and Adjusted EBITDA of $655 million and $343 million, respectively in the third quarter of 2021. The company also averages double-digit annual revenue growth over the past five years.
By combining the capabilities, talent, and resources, the company aims to provide better service and expanded solutions to its users. The acquisition combines American Tower’s wireless connectivity at the mobile edge and CoreSite’s highly interconnected data center facilities at the core edge to create an extended edge. The combined company will be able to support high-performance, low-latency applications seamlessly. Tom Bartlett, Chief Executive Officer of American Tower, said,
« 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. 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. »
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