© Reuters. FILE PHOTO: Trading information for KKR & Co is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, USA, August 23, 2018. REUTERS / Brendan McDermid
(Reuters) – KKR & Co Inc and Global Infrastructure Partners (GIP) to Acquire US Data Center Operator CyrusOne (NASDAQ 🙂 Inc private for $ 11.49 billion in cash, the latest deal in an industry that has exploded during the COVID-19 pandemic.
The coronavirus-driven shift to remote work has increased the use of cloud-based services, increasing the demand for data centers that help power digital infrastructure.
KKR and GIP will pay $ 90.50 for each CyrusOne share under the agreement announced on Monday, which represents a 5.9% premium over the company’s latest closing price. Shares of CyrusOne increased 3.6%.
The acquisition values the Dallas-based company, which has more than 50 data centers globally, at approximately $ 15 billion including debt.
In a similar move, the American Tower (NYSE 🙂 real estate investment fund agreed to buy CyrusOne’s rival CoreSite Realty Corp. for $ 7.5 billion.
Infrastructure and real estate funds have also raised resources in data centers in recent months to capitalize on increased demand.
In June, Blackstone (NYSE 🙂 Funds agreed https://www.reuters.com/business/blackstone-take-qts-realty-trust-private-10-bln-deal-2021-06-07 to purchase of QTS Realty (NYSE 🙂 Trust Inc for $ 10 billion to gain access to the company’s more than 7 million square feet of data center space across North America and Europe.
Denver-based CoreSite, operator of 24 data centers in the United States, recorded a 2.1% increase in pre-market trading.
Reuters first reported that CoreSite was fielding acquisition interests last week and in September it reported that CyrusOne was working with an investment bank. Morgan Stanley (NYSE 🙂 to explore strategic alternatives.
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