Summary
American Tower Corporation (AMT) announced a significant strategic partnership on July 11, 2022, involving its U.S. data center business. Stonepeak Partners LP, on behalf of affiliated investment vehicles, will acquire a substantial 29% ownership interest in this segment for $2.5 billion. This transaction values the entire U.S. data center business at approximately $10.5 billion on an enterprise value basis. Importantly, American Tower will retain managerial and operational control, including day-to-day oversight, while Stonepeak will gain certain governance rights. The deal is anticipated to close in the third quarter of 2022, pending standard closing conditions. This move signifies a strategic move to inject capital and potentially enhance the growth and capabilities of its data center operations.
Key Highlights
- 1Stonepeak Partners LP to acquire a 29% ownership stake in AMT's U.S. data center business.
- 2Transaction values the U.S. data center business at an enterprise value of approximately $10.5 billion.
- 3Investment amount by Stonepeak is $2.5 billion for the ownership stake.
- 4American Tower Corporation retains managerial and operational control of the data center business.
- 5Stonepeak will receive certain governance rights as part of the partnership.
- 6Transaction is expected to close in the third quarter of 2022.
- 7Financing for Stonepeak's investment, totaling $2.5 billion, is secured via equity and debt commitment letters.