American Tower Corporation: Stonepeak Acquiring Stake in American Tower's CoreSite For $2.5bn

Jul 15, 2022 | Posted by Abdul-Rahman Oladimeji

Stonepeak has revealed that it is acquiring a 29 percent stake in American Tower’s Coresite data center business. The investment firm will pay $2.5 billion for the stake in the business. The deal is expected to close in Q3 2022, subject to customary closing conditions. According to an announcement by the companies, the deal will put both Stonepeak and American Tower in a position to benefit from high demands for hybrid IT solutions, low-latency, and agile interconnection across their data center campuses located in major metros across the country. American Tower has been in the news in recent months for acquisitions. In November 2021, it acquired CoreSite for $10.1 billion. 

The CEO and President of American Tower, Tom Bartlett, said: “We are pleased to partner with Stonepeak in our US data center business, where we expect to create value through growth in our highly interconnected, cloud on-ramp rich portfolio of data center assets. In Stonepeak, we’ve found a like-minded partner, with deep communications infrastructure experience and a long-term investment philosophy that aligns with the principles of American Tower and our longer-term strategy in the data centers segment.” 

He continued by saying: “While this transaction supports the equity financing component for our previously completed CoreSite acquisition, it also creates a platform through which growth opportunities can be strategically evaluated and financed, with American Tower and Stonepeak committed to executing on opportunities as the 5G ecosystem continues to develop.”