Shares of CoreSite Realty Corp. COR, +2.25% rallied 1.2% toward a sixth-straight record in premarket trading Monday, after the data center-focused real estate investment trust agreed to be acquired by American Tower REIT AMT, -0.14% in a deal valued at about $10.1 billion, including debt. Under terms of the deal, American Tower will pay $170 for each CoreSite share outstanding, which represents a 2.0% premium to Friday’s closing price of $166.59. The buyout price implies a market capitalization for CoreSite of $7.51 billion. CoreSite’s stock had soared 16.9% amid a 10-day win streak through Friday. The deal is expected to close by the end of 2021, “or shortly thereafter.” American Tower said said it has obtained financing from J.P. Morgan for the deal, which is expected to “modestly” add to earnings in initially, and be “increasingly accretive” over time. CoreSite’s stock has run up 33.0% year to date through Friday, while American Tower shares have climbed 21.2%, the SPDR Real Estate Select Sector ETF XLRE, +0.04% has advanced 31.8% and the S&P 500 SPX, +0.72% has gained 24.7%.
This article was originally published by Marketwatch.com. Read the original article here.
