Technology

EXCLUSIVE Data center operator CoreSite fields acquisition interest-sources

2 minute read

Lights illuminate rack servers inside the data center of Equinix in Pantin, outside Paris, France, December 7, 2016. REUTERS/Benoit Tessier

Register now for FREE unlimited access to reuters.com

Nov 9 (Reuters) - CoreSite Realty Corp (COR.N), a U.S. data center operator with a market value of more than $8 billion, is working with an investment bank to explore its options after attracting acquisition interest, people familiar with the matter said.

CoreSite has been approached by companies that include American Tower Corp (AMT.N) and Digital Realty Trust Corp (DLR.N), as well as private equity firms, the sources said.

There is no certainty that CoreSite will successfully negotiate a deal with any party, the sources added, requesting anonymity because the matter is confidential.

Register now for FREE unlimited access to reuters.com

CoreSite and American Tower did not immediately respond to requests for comment. Digital Realty declined to comment.

CoreSite shares jumped as much as 8.6% on the news.

Based in Denver, CoreSite has more than 25 operating data center facilities in North America, leasing out space to companies that outsource some of their computing power. It started off as a company of private equity firm Carlyle Group Inc (CG.O) and became publicly listed a decade ago.

CoreSite shares are up 28% year-to-date, outperforming the benchmark U.S. S&P 500 Index, as remote working during the COVID-19 pandemic fueled demand for more processing power and data storage in corporate networks.

CyrusOne Inc (CONE.O), a U.S. data center operator with a market capitalization of about $10 billion, has also been exploring strategic alternatives that include a potential sale of the company, Reuters reported in September. read more

Register now for FREE unlimited access to reuters.com
Reporting by Greg Roumeliotis and David French in New York Editing by Bernadette Baum and Nick Zieminski

Our Standards: The Thomson Reuters Trust Principles.

More from Reuters