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Following the completion of its previously announced tender offer for all outstanding shares of CoreSite Realty Corporation American Tower has completed its purchase of CoreSite Realty Corporation (NYSE: COR). CoreSite was acquired by American Tower through the merging of one of its fully owned subsidiaries with and into CoreSite. Borrowings from American Tower’s revolving credit facilities and term loans were used to support the transaction.
With 25 data centers, 21 cloud on-ramps, and over 32,000 interconnections in eight key U.S. cities, CoreSite achieved yearly revenue and Adjusted EBITDA of $655 million and $343 million, respectively, in Q3 2021.
The acquisition is valued at $10.1 billion in total, which includes the assumption and/or repayment of CoreSite’s current debt.
“We are thrilled to welcome CoreSite’s exceptional team to American Tower and are ready to work together to create long-term shareholder value,” said Tom Bartlett, Chief Executive Officer (CEO) at American Tower. “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.”
Double-Digit Annual Revenue Growth
CoreSite has had double-digit annual revenue growth over the previous five years and is led by a seasoned management team that has established leadership positions and a crucial presence with cloud service providers (CSPs). CoreSite’s activities will be in a solid position for future organic growth, according to American Tower.
With a portfolio of roughly 219,000 communications sites and a highly linked network of U.S. data center facilities, American Tower is a prominent independent owner, operator, and developer of multitenant communications real estate.
American Tower was advised by CDX Advisors and had J.P. Morgan as its principal financial advisor. American Tower’s primary legal advisor was Cleary Gottlieb Steen & Hamilton LLP. CoreSite’s main financial advisor was Evercore, and its primary legal advisor was Wachtell, Lipton, Rosen & Katz.