American Tower closes CoreSite Realty acquisition
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.”
For related articles, visit the Business Topic Center.
For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer’s Guide.
To stay abreast of fiber network deployments, subscribe to Lightwave’s Service Providers and Datacom/Data Center newsletters.
Stephen Hardy | Editorial Director and Associate Publisher, Lightwave
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.
You can connect with Stephen on LinkedIn as well as Twitter.