American Tower announced the acquisition of CoreSite Realty Corporation for approximately $10.1 billion.
The $170 per share cash deal is expected to create an interconnected communications real estate platform optimally positioned to benefit from the convergence of wireline and wireless networks amid accelerating global 5G deployments.
CoreSite, which has 25 data centers, 21 cloud on-ramps and over 32,000 interconnections in eight major U.S. markets, generated annualized revenue and Adjusted EBITDA of $655 million and $343 million, respectively, in Q3 2021. CoreSite has averaged double-digit annual revenue growth over the past five years.
The transaction is expected to be transformative for American Tower’s mobile edge compute business in advance of the proliferation of 5G low-latency applications throughout the cloud, enterprise and network ecosystems.
This transaction brings together American Tower’s wireless connectivity at the mobile edge and CoreSite’s data center facilities at the core edge to create an extended edge for customers that can support high performance, low-latency applications.
Tom Bartlett, American Tower’s Chief Executive Officer said: “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.”
