American Tower partners with Stonepeak in U.S. data-center business

Stonepeak, an alternative investment firm specializing in infrastructure and real assets, has plans to acquire an ownership interest of about 29 percent in American Tower Corp.’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 $2.5 billion, implying an enterprise value of about $10.5 billion for the U.S. data-center business (held as subsidiaries of American Tower). Pursuant to the related partnership agreement, 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. Stonepeak is making its investment as part of its core infrastructure strategy. The affiliated investment vehicles have received equity and debt commitment letters in the amount of $2.5 billion from equity and debt fi