Data Center Finance: CyrusOne Acquires Cervalis Holdings
CyrusOne announced in late April that it completed the acquisition of Cervalis Holdings, a privately-held data center owner and operator based in Norwalk, Connecticut. As part of the deal, CyrusOne will come into possession of four New York data centers and two work area recovery facilities. The new sites will expand CyrusOne’s data center portfolio to 31 locations across 12 different cities, including 10 U.S. sites, a London data center and a Singapore data center.
The New York data centers are all Tier 3 and higher facilities, comprising more than 500,000 square feet, including over 125,000 square feet of colocation data center space. The work area recovery facilities, also located in the New York area, cover more than 100,000 square feet of available space.
Over the last five years, Cervalis’ revenue has grown at a compound annual rate of approximately 14 percent. By the end of 2014, more than three- quarters of the company’s colocation data center space was utilized.
“We are really excited about this transaction and expect it to create significant strategic opportunities for our customers and benefits to our stockholders. I have known Mike Boccardi and Larry DeGeorge at Cervalis for many years and have always admired the team they have assembled and the financial services focused platform they have created in the New York Metro area,” said Gary Wojtaszek, president and CEO of CyrusOne. “Their focus on serving the needs of the largest financial enterprise customers in the world will be a valuable complement to CyrusOne…”
The terms of the purchase stipulate that CyrusOne will acquire Cervalis for roughly $400 million in an all cash transaction. The deal is expected to close by the end of June, subject to the fulfillment of closing conditions.
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