CyrusOne (NASDAQ: CONE), a global data center REIT specializing in design, construction and operation of more than 50 colocation data centers worldwide, has been acquired by global investment firms KKR and Global Infrastructure Partners (GIP). KKR and GIP will acquire all outstanding shares of common stock of CyrusOne for $90.50 per share in an all-cash transaction valued at approximately $15 billion.
As a provider of hybrid-cloud and multi-cloud deployments, CyrusOne provides colocation, hyperscale, and custom-built data center environments to support clients and help improve the strategic connectivity of their critical data infrastructure and accomplish sustainability goals.
CyrusOne will be a privately held corporation controlled entirely by KKR and GIP once the deal is completed, and CyrusOne’s common stock will no longer be traded on any public exchange. KKR’s investment is being made primarily from its global infrastructure and real estate equity strategies, while GIP’s investment is being made from its global infrastructure funds.
“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,” said Dave Ferdman, Co-Founder and interim President and Chief Executive Officer (CEO) of CyrusOne. “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.”
The $90.50 per share purchase price reflects a premium of approximately 25% to CyrusOne’s unaffected closing stock price on September 27, 2021
Access to Long Term Capital
“Today’s 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,” said Lynn Wentworth, Chair of the CyrusOne Board of Directors. “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, which was unanimously approved by the CyrusOne Board of Directors, is not subject to a financing condition. It is scheduled to conclude in the second quarter of 2022, subject to standard closing conditions such as regulatory clearances and stockholder approval.
“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,” said Waldemar Szlezak, Managing Director at KKR, and Will Brilliant, Partner at GIP. “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.”