KKR, GIP to take data center firm CyrusOne private in $15bn deal
KKR and Global Infrastructure Partners (GIP) have signed an all-cash deal worth around $15 billion to acquire CyrusOne, in a move to take the American data center real estate investment trust (REIT) private.
The consideration for the deal is inclusive of the data center REIT’s outstanding debt.
According to the terms of the transaction, GIP and KKR will acquire the shares of CyrusOne for $90.5 per share.
Dave Ferdman — Co-Founder and interim President and CEO of CyrusOne said: “This transaction is a testament to the tremendous work by the entire CyrusOne team. We have built one of the world’s leading data center companies with a presence across key U.S. and international markets supporting our customers’ mission-critical digital infrastructure requirements while creating significant value for our stockholders.
“KKR and GIP will provide substantial additional resources and expertise to accelerate our global expansion and help us deliver the timely and reliable solutions at scale that our customers value.”
CyrusOne is a specialist in the development, construction, and operation of data centers. It currently operates more than 50 data centers in different parts of the world.
The company provides mission-critical facilities to ensure the continuous functioning of IT infrastructure. It serves approximately 1,000 clients, which include nearly 200 Fortune 1000 firms.
Waldemar Szlezak — KKR Managing Director and Will Brilliant — Partner at GIP jointly stated: “CyrusOne has built one of the strongest data center companies in the world and has a strong track record of development and operational expertise in addition to delivering best-in-class service to its customers. We are excited to work together with the Company’s proven team to build on CyrusOne’s market leadership and support their customers’ growing data center infrastructure requirements.
“We see numerous opportunities ahead to continue expanding CyrusOne’s footprint across key global digital gateway markets and look forward to leveraging our global resources, access to long term capital and deep expertise to support the Company’s growth.”
After the conclusion of the deal, CyrusOne will transform into a privately-held company, owned fully by GIP and KKR.
Currently, trading under the symbol CONE on NASDAQ, CyrusOne will be delisted following the closing of the deal.
The transaction, which has been unanimously okayed by CyrusOne’s board of directors, is the result of a strategic review carried out to identify the best way forward for the business and also for maximizing the value of stockholders.
Lynn Wentworth —CyrusOne Board of Directors Chair said: “The announcement is the culmination of a robust strategic review process conducted by the CyrusOne Board of Directors to determine the best path forward for the Company and maximize stockholder value.
“This transaction provides CyrusOne stockholders with significant value and simultaneously positions the Company to even better serve its customers to meet their needs in key markets around the world.”
The deal’s closing is subject to regulatory approvals, CyrusOne shareholders’ approval, as well as other conditions. Following these, it is anticipated to close in Q2 2022.