American Tower Corp agreed to buy CoreSite Realty Corp, a U.S. data center operator, for $7.51 billion in cash on Monday, tapping into a sector that has witnessed a surge in demand during the COVID-19 outbreak.

The $170 per share offer price reflects a 5.7% premium to CoreSite's closing price on Nov. 9, when a major Newswire first reported the talks.

In premarket trading, CoreSite's stock increased 2.1% to $170.25.Why American Tower Stock Soared Past The Competition (And Will Keep Rising) - Best Stocks

The Denver-based firm operates more than 24 data center sites across North America, renting out space to businesses looking to outsource some of their computing capacity. It began as a subsidiary of Carlyle Group, a private equity firm, and became publicly traded a decade ago.

The transaction is scheduled to be completed by the end of the year.

J.P. Morgan served as American Tower's principal financial adviser, while Evercore served as CoreSite's financial adviser.