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The coronavirus-driven shift to remote work has increased the usage of cloud-based services, driving up demand for data centers that help power the digital infrastructure.
KKR and GIP will pay $90.50 for each CyrusOne share as per the deal announced on Monday, representing a 5.9% premium to the company’s last closing price. CyrusOne shares rose 3.6%.
The buyout values the Dallas-based company, which has more than 50 data centers globally, at about $15 billion including debt.
In a similar move, real estate investment trust American Tower (NYSE:AMT) agreed to buy CyrusOne’s rival CoreSite Realty Corp for $7.5 billion.
Infrastructure and real estate funds have also scooped up data center assets in recent months to capitalize on the demand surge.
In June, Blackstone (NYSE:BX) Funds agreed https://www.reuters.com/business/blackstone-take-qts-realty-trust-private-10-bln-deal-2021-06-07 to purchase QTS Realty (NYSE:QTS) Trust Inc for $10 billion to gain access to the company’s more than 7 million square feet of data center space throughout North America and Europe.
Denver-based CoreSite, the operator of 24 data centers in the United States, was 2.1% higher in premarket trading.
Reuters had first reported CoreSite was fielding acquisition interests last week, and in September had reported that CyrusOne was working with investment bank Morgan Stanley (NYSE:MS) to explore strategic alternatives.
