CyrusOne, a real estate investment trust specializing in carrier-neutral colocation data center properties, has announced an agreement with Quantum Strategic Partners – a private investment fund – to purchase Zenium Data Centers. Zenium is a hyperscale data center provider in Europe with four properties in London and Frankfurt, next to Amsterdam the continent’s two largest data center markets.
Zenium Data Centers’ purchase price is $442 million, reflecting a multiple of 18 times expected annualized Adjusted EBITDA of approximately $25 million from both commenced and signed but not yet billing leases. CyrusOne will also reimburse Zenium for capital expenditures between signing and closing. The transaction is expected to close in the first quarter of 2018, subject to the fulfillment of customary closing conditions including applicable regulatory approvals.
“This transaction establishes a significant presence for us in Europe’s two largest data center markets and provides a platform to scale to meet the strong demand across the continent,” said Gary Wojtaszek, president and chief executive officer (CEO) of CyrusOne. “The Zenium team is experienced and well-respected with particular expertise leasing to hyperscale companies, and they have built an outstanding, fast-growing company. The capacity for further growth at their existing locations remains substantial, allowing us to nearly double the size of their business, and we will be able to leverage the European infrastructure to expand within London and Frankfurt and into new markets in an efficient, cost-effective manner.”
The acquisition of Zenium Data Centers is the first step in executing CyrusOne’s previously announced European data center expansion strategy, adding four properties in London and Frankfurt. The European data center market would be growing rapidly. Establishing a significant European presence is a critical step in CyrusOne’s strategic objective of becoming a global data center provider.