Stonepeak Partners LP agreed to acquire a 29% stake in U.S. data center business from American Tower Corporation (NYSE:AMT) for $2.5 billion on July 11, 2022. Stonepeak received equity and debt commitment letters in the amount of $2.5 billion from equity and debt financing sources. 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 approximately $10.5 billion for the U.S. data center business.

The business has annualized revenues of $737 million and annualized operating profit of $365 million. 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. The transaction is expected to close in the third quarter of 2022, subject to customary closing conditions.

J.P. Morgan is serving as lead financial advisor to American Tower, who is also being advised by CDX Advisors. Cleary Gottlieb Steen & Hamilton LLP is serving as principal legal advisor to American Tower, who is also being advised by Sullivan & Worcester LLP. MUFG Bank, Ltd. is serving as sole financial advisor to Stonepeak.

Sidley Austin LLP is serving as principal legal advisor to Stonepeak.