(Adds coresite background, deal details, share movement)
Nov 15 (Businesshala) – American Tower Corp on Monday agreed to buy US data center operator CoreSight Realty Corp for $7.51 billion in cash, to tap an area that has hit demand during the COVID-19 pandemic. Have seen a jump.
The offering price of $170 per share represents a premium of about 5.7% to CoreSight’s November 9 closing price, when Businesshala first reported negotiations of the deal.
Shares of CoreSite rose 2.1% to $170.25 in premarket trading.
The Denver-based company has more than 24 operating data center facilities in North America, leasing space to companies that outsource some of its computing power. It began as a company of private equity firm Carlyle Group Inc. and went publicly listed a decade ago.
The deal is expected to be completed by the end of this year. JPMorgan was American Tower’s principal financial advisor, while Evercore served as CoreSight’s financial advisor.