Private equity, Enterprise, Content

Data Center M&A: CyrusOne REIT Acquired By KKR, GIP for $15B

KKR and Global Infrastructure Partners are acquiring CyrusOne, the data center REIT (real estate investment trust), for $15 billion including debt. The deal, subject to regulatory approvals, is expected to close in Q2 of 2022.

This is technology M&A deal number 719 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.

This deal surfaces the same day that American Tower disclosed plans to acquire CyrusOne rival CoreSite for $10.1 billion.

Rumors about a potential CyrusOne buyout surfaced in February 2020 amid a surprise CEO resignation, and again in September 2021. CyrusOne operates roughly 50 data centers worldwide. The company supports around 1,000 customers, including approximately 200 Fortune 1000 companies, CyrusOne indicated.

CyrusOne Acquired: Executive Perspectives on the Data Center Business Buyout

In a prepared statement about the deal, CyrusOne founder and Interim CEO Dave Ferdman 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.”

Added Lynn Wentworth, CyrusOne's chair for the board of directors:

“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. 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.”

Concluded Waldemar Szlezak, managing director at KKR, and Will Brilliant, partner at GIP:

“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.”

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.