News Hub

Report: CyrusOne mulls sale after bidder approach

Written by Mon 19 Aug 2019

Bloomberg reports bidder group including KKR, Stonepeak, and I Squared Capital is in preliminary stages of proposing a bid for the colocation company

CyrusOne is considering a sale after the colocation company was approached by a group of bidders, including KKR & Co., Stonepeak Infrastructure Partners and I Squared Capital.

The group has not yet made a bid but has alerted CyrusOne that it is in the preliminary stages of proposing one. A source familiar with the matter told Bloomberg that there are other bidders interested in CyrusOne and that the Dallas-based company has not yet made a decision on a potential takeover. The company is currently working with an adviser to assess its options.

Founded in 2001, CyrusOne is of the world’s leading colocation providers, owning and operating 48 data centres across US, UK, Singapore, Frankfurt and Germany and serving 1,000 customers. Unlike other real-estate investment trusts (REITs) that specialise in data centres, such as Equinix and Digital Realty, CyrusOne mainly serves Fortune 1,000 companies.

REITs have enjoyed surging demand for their services and are competing to expand globally. Last year, CyrusOne acquired European data centre operator Zenium for $442 million, while Digital Realty expanded into Brazil with its $1.8 billion acquisition of Ascenty. This year Equinix penned an agreement with Singapore’s sovereign wealth fund to expand its European footprint.

Hyperscale customers are increasingly turning to colocation providers as they race to the “edge” to ensure consistent and reliable service to local users. According to Synergy, colocation revenue from hyperscale customers grew 24 percent and 16 percent year-on-year in the wholesale and retail segments, respectively.

Written by Mon 19 Aug 2019


colocation cyrusone digital realty Equinix hyperscale M&A
Send us a correction Send us a news tip