Sidley represented Stonepeak in the acquisition of a minority common equity interest and a preferred equity interest in CoreSite, a data center company with a significant presence in eight major U.S. markets, from American Tower for US$2.5 billion. The investment implies an enterprise value of approximately US$10.5 billion for the U.S. data center business (held as subsidiaries of American Tower). Pursuant to the 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. This investment is part of Stonepeak’s core infrastructure strategy, and will position American Tower and Stonepeak to mutually benefit from the demand for low-latency, hybrid IT solutions, and agile interconnection across the platform’s data center campuses, which are strategically located in key U.S. metro areas. The platform’s data center portfolio consists of 27 data centers in 10 U.S. markets, more than 450 networks, 23 native cloud on-ramps, and over 35,000 interconnections.
The Sidley team was led by partners Tim Chandler, Cliff Vrielink, and Tommer Yoked, as well as senior managing associate John Stribling, managing associate Chanse Barnes, and associates Jack Messer, Sarah O’Brien, and Kiana Shin. Additional support was provided by partners Chris Brause, Jerry Cummins, and Jason Friedhoff (all REITs); Karen Kazmerzak and Patrick Harrison (Antitrust); Liz McCloy (Real Estate); Glenn Nash (Technology & Life Sciences Transactions); Heather Palmer (Environmental); Alan Raul (Privacy); Angela Richards (Tax); Josh Thompson (Finance); George Vlahakos (Capital Markets); Eric Winwood (Employee Benefits and Executive Compensation); as well as counsel Marian Fielding (Employee Benefits and Executive Compensation); Robert Kelly (Technology & Life Sciences Transactions); Kenny Terrero (REITs); and Jim Weiss (Labor, Employment and Immigration). Support was also provided by senior managing associate Dustin Anderson (REITs); managing associate Andrew Smith (REITs); and associates Shen Mei Bolton (Finance); Joe Coniglio (Antitrust); Victor Flores (Privacy); Sasha Hondagneu-Messner (Privacy); Dina Kang and Paul Kariyawasam (both Technology & Life Sciences Transactions); Joy Kerr (Real Estate); Shahrukh Khan (REITs); Collin Marshall (Technology & Life Sciences Transactions); Elizabeth Pyjov and Daniel Raymer (both REITs); Sheri Rockwell (Privacy); and Katie Sreenan and Jordan Varberg (both Labor, Employment and Immigration).