American Tower will acquire CoreSite for approximately $10.1 billion, aiming to create a differentiated, comprehensive, and interconnected communications real estate platform optimally positioned to benefit from the convergence of wireline and wireless networks amid accelerating global 5G deployments.
American Tower expects to leverage its strong financial position to further accelerate CoreSite’s attractive development pipeline in the US, while also evaluating the potential for international expansion in the data center space. As of Q3 2021, CoreSite consists of 25 data centers, 21 cloud on-ramps, and over 32,000 interconnections in eight major US markets.
Tom Bartlett, American Tower’s CEO stated, “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.”
The transaction is also expected to be transformative for American Tower’s mobile edge computing business in advance of the proliferation of 5G low-latency applications throughout the cloud, enterprise, and network ecosystems. With increased scale and a broadened, more comprehensive offering, American Tower and CoreSite expect the combined company to be well-positioned to address evolving customer needs through an enhanced value proposition for network and cloud providers, service integrators, and enterprise customers.
CoreSite’s CEO, Paul Szurek, stated, “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 US metro data center campuses. 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.”