After a couple years of trying its hand in the data center space, American Tower has made up its mind and now plans to jump all the way into the deep end. The tower infrastructure giant has agreed to acquire Coresite for $10.1B.
The two companies entered into a definitive agreement yesterday under which American Tower will pay $170 per share. CoreSite operates 25 data centers spanning some 4.6M square feet of data center space in eight US markets: Boston, Chicago, Denver, Los Angeles, Miami, New York, Northern Virginia, Silicon Valley, and Washington DC. Within that space they manage 21 cloud on-ramps and 32K interconnections. Coresite does some $655M in annual revenue upon which they generate some $343M in cash.
American Tower bought ColoAtl a few years ago around which it has been actively developing an edge data center footprint. The purchase of CoreSite gives them a core colo footprint around which to dramatically expand that edge offering. Clearly they feel they have figured out their approach to this side of the infrastructure business and are ready to put real resources behind it.
American Tower will be financing the transaction via the credit markets, with JP Morgan helping with committed financing. The deal is expected to close by the end of 2021, so they aren't wasting any time.
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