Global data center REIT CyrusOne Inc. (NASDAQ: CONE) has agreed to a purchase bid from investment firms KKR and Global Infrastructure Partners (GIP), the three companies announced last November.
In the deal, KKR and GIP will acquire all outstanding shares of CyrusOne common stock for $90.50 per share in an all-cash.
The transaction is valued at approximately $15 billion, including the assumption of debt, and is expected to close in the second quarter of 2022. The transaction is subject to customary closing conditions, including regulatory approvals and approval by CyrusOne stockholders.
CyrusOne specializes in data center design, construction, and operation, with more than 50 data centers worldwide. The company offers colocation, hyperscale, and build-to-suit environments to its customers.
“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 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 CyrusOne board of directors unanimously approved the deal, which the companies say is not subject to a financing condition. The $90.50 per share purchase price offers a premium of approximately 25% to CyrusOne’s unaffected closing stock price on September 27, 2021. This date was the last full trading day prior to speculation about such a deal appeared in the media.
“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,” added Lynn Wentworth, chair of the CyrusOne board. “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.”
“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 the purchasers in a statement attributed to both 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.”