American Tower will retain managerial and operational management of the information middle enterprise
American Tower Company and Stonepeak, an funding agency specializing in infrastructure and actual property, introduced that Stonepeak, on behalf of sure affiliated funding automobiles, will purchase an possession curiosity of roughly 29% in American Tower’s U.S. information middle enterprise as a part of a brand new long-term strategic partnership.
The partnership shall be realized via an funding in widespread fairness and mandatorily convertible most popular fairness, in a transaction valued at $2.5 billion, implying an enterprise worth of roughly $10.5 billion for the U.S. information middle enterprise.
Underneath the phrases of the deal, American Tower will retain managerial and operational management, in addition to day-to-day oversight of its U.S. information middle enterprise, and Stonepeak will acquire sure governance rights.
In a launch, American Tower stated that each corporations will profit from the demand for low-latency, hybrid IT options and agile interconnection throughout the platform’s information middle campuses, that are positioned in key U.S. metro areas. The platform’s information middle portfolio consists of 27 information facilities in 10 U.S. markets, greater than 450 networks, 23 native cloud on-ramps and over 35,000 interconnections.
Tom Bartlett, American Tower’s president and CEO, stated: “We’re happy to associate with Stonepeak in our U.S. information middle enterprise, the place we count on to create worth via development in our extremely interconnected, cloud on-ramp wealthy portfolio of information middle property. In Stonepeak, we’ve discovered a like-minded associate, with deep communications infrastructure expertise and a long-term funding philosophy that aligns with the rules of American Tower and our longer-term technique within the information facilities phase. Whereas this transaction helps the fairness financing part for our beforehand accomplished CoreSite acquisition, it additionally creates a platform via which development alternatives may be strategically evaluated and financed, with American Tower and Stonepeak dedicated to executing on alternatives because the 5G ecosystem continues to develop.”
“American Tower has established one of many premier community dense, interconnection-focused information middle platforms within the U.S. via CoreSite and former acquisitions, which we view as an incredible match for our core infrastructure technique. The platform is strategically positioned to be on the forefront of the continued shift from a standard centralized infrastructure mannequin to a cloud-based, linked and distributed digital infrastructure mannequin and we’re excited to associate with the American Tower group to assist speed up funding behind this development within the years to return,” stated Andrew Thomas, Managing Director and Co-Head of Communications at Stonepeak.
In November 2021, American Tower Company and CoreSite Realty Company introduced that they’d entered right into a definitive settlement via which American Tower will purchase CoreSite for almost $10.1 billion.
American Tower beforehand stated that the CoreSite acquisition shall be “transformative for American Tower’s cellular edge compute enterprise prematurely of the proliferation of 5G low-latency purposes all through the cloud, enterprise and community ecosystems.”
As of Q3, 2021, CoreSite had 25 information facilities, 21 cloud on-ramps and over 32,000 interconnections in eight main U.S. markets.
American Tower is an proprietor, operator and developer of multitenant communications actual property with a portfolio of roughly 221,000 communications websites.
