American Tower Corp. (NYSE: AMT) announced December 28 it has closed the previously announced acquisition of CoreSite Realty Corp. (NYSE: COR; see “American Tower expands data center ambitions with CoreSite acquisition agreement”). The company paid $170.00 per share in cash for its new assets. With the planned assumption and/or repayment of CoreSite’s debt, the deal is worth approximately $10.1 billion.
The acquisition completed via a merger of one of American Tower’s wholly owned subsidiaries with and into CoreSite. American Tower leveraged revolving credit facilities and term loans to fund the deal. The company expects the acquisition to be “modestly accretive” to its adjusted funds from operations per share initially and increasingly beneficial thereafter.
CoreSite operated 25 data centers, 21 cloud on-ramps, and more than 32,000 interconnections in eight major U.S. markets (see, for example, “Bandwidth IG provides dark fiber for CoreSite’s Santa Clara Data Center Campus” and “CoreSite building second data center in Chicago”).
“We are thrilled to welcome CoreSite’s exceptional team to American Tower and are ready to work together to create long-term shareholder value,” commented Tom Bartlett, American Tower’s CEO. “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.”
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