Wednesday, February 8, 2017

CyrusOne Buys Two Data Centers for $490 Million

CyrusOne will acquire two enterprise-class data centers from Sentinel Data Centers for $490 million. The facilities are located in Raleigh-Durham, North Carolina and Somerset, New Jersey.

In 2016, the two data centers generated revenue of nearly $50 million. As of December 31, 2016, the two properties consisted of more than 160,000 colocation square feet and approximately 21 MW of power capacity, with nearly 85% of the power capacity leased.

"We are very excited about this transaction, which establishes a presence for us in the Southeast, adds a high quality portfolio of large enterprise customers, and features an attractive long-term lease profile," said Gary Wojtaszek, president and chief executive officer of CyrusOne. "We respect the work of the Sentinel founders. Their focus on great facilities and personalized customer service matches ours. The transaction is expected to be immediately accretive and provides significant opportunities to grow the combined business and create value for our shareholders."