American Tower and Stonepeak partner for U.S. Data Center business in a $2.5B deal

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• American Tower (NYSE:AMT) and Stonepeak, alternative investment firm specializing in infrastructure and real assets, announced that the latter on behalf of certain affiliated investment vehicles, will acquire an ownership interest of ~29% in the former's U.S. data center business as part of a new long-term strategic partnership.
• The partnership will be realized through an investment in common equity and mandatorily convertible preferred equity, in a transaction valued at $2.5B thereby implying an enterprise value of ~$10.5B for the U.S. data center business which are head as American tower subsidiaries.
• American Tower will retain managerial and operational control, as well as day-to-day oversight of its U.S. data center business, and Stonepeak will obtain certain governance rights.
• The transaction is expected to close in Q3 of 2022.

Comments

[Liquidity Swords]

Wait did AMT just take a haircut in the value of the Coresite acquisition?

[Einherjar]

@Liquid Swords coresite was a 10.1B all Cash deal

[user1416]

@Liquid Swords No, this transaction actually supports part of the equity financing for CoreSite.

[Allen Greathouse]

@user1416 Also they are paying 10.5 vs AMT’s 10.1. But AMT had to pay a takeover multiple. This is a great deal for AMT.