Thursday, June 10, 2010

Cincinnati Bell Acquires CyrusOne Data Centers for $525 Million

Cincinnati Bell has acquired CyrusOne, one of the largest data center colocation operators in Texas, for approximately $525 million in cash. The deal was first announced in May.

The acquisition includes seven data centers in Houston, Dallas, and Austin with a total of 174,000 square feet of data center capacity. As a result, Cincinnati Bell's Technology Solutions segment will have a combined total of 620,000 square feet of data center capacity in 17 facilities, and, based on annualized first quarter 2010 results, combined operating income of approximately $56 million and adjusted earnings before interest, income taxes, depreciation and amortization (Adjusted EBITDA1) of approximately $93 million.

"The acquisition of CyrusOne is an important step in our long-term strategy of becoming the preferred global data center colocation provider to Fortune 1000 companies," said Jack Cassidy, president and chief executive officer of Cincinnati Bell. "With more than 600,000 square feet of high quality data center space and almost $100 million of Adjusted EBITDA, we believe the combined data center business of Cincinnati Bell and CyrusOne makes us one of the largest data center companies in the U.S. and strongly positions us to help large enterprise customers manage their global data center requirements with highly cost-efficient and flexible solutions."

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