American Tower Corp. has acquired CoreSite Realty for $10.1 billion including debt. The deal, which will blend wireless communications and data center businesses, is expected to close by the end of 2021, or shortly thereafter, American Tower indicated.
This is technology M&A deal number 720 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
This deal surfaces the same day that KKR and Global Infrastructure Partners announced plans to acquire CyrusOne for $15 billion including debt.
About American Tower and CoreSite Realty
American Tower specializes in wireless communications infrastructure. CoreSite Realty operates 25 data centers, 21 cloud on-ramps and over 32,000 interconnections in eight major U.S. markets, the seller said.
Together, American Tower and CoreSite plan to capitalized on 5G low-latency application opportunities -- which extend across cloud, enterprise and network infrastructure. The overall goal is to further engage network and cloud providers, service integrators and enterprise customers.
CoreSite generated annualized revenue and adjusted EBITDA of $655 million and $343 million, respectively, in Q3 2021, the M&A statement noted.
American Tower Acquires CoreSite: Executive Perspectives
In a prepared statement about the deal, American Tower CEO Tom Bartlett 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.”
Added CoreSite CEO Paul Szurek:
“We are excited to partner with American Tower to expand its communications infrastructure ecosystem and accelerate its edge computing strategy through the addition of CoreSite’s differentiated portfolio of U.S. metro data center campuses. The combined company will be ideally positioned to address the growing need for convergence between mobile network providers, cloud service providers, and other digital platforms as 5G deployments emerge and evolve. In addition, we expect the enhanced scale and further geographic reach to provide a platform for the combined company to accelerate its growth trajectory and expand into additional U.S. metro areas, as well as internationally, leveraging American Tower’s extensive presence across the globe. CoreSite’s outstanding team, interconnection platform and data center campus portfolio are a highly complementary fit with American Tower’s existing communications sites, and we believe this partnership delivers significant value to CoreSite’s stockholders and will create an exciting new chapter for our customers, employees and partners.”
