CyrusOne announced in early July that it had closed on its acquisition of data center operator Cervalis Holdings LLC. With the purchase, CyrusOne adds four New York data centers and two work area recovery sites, expanding its existing portfolio to 31 facilities across 10 U.S. cities, London and Singapore. The terms of the transaction called for a subsidiary of CyrusOne to acquire Cervalis for roughly $400 million in an all cash deal.
The four New York data centers are all Tier 3+ facilities that, along with the two recovery sites, make up more than 500,000 square feet of available space. The biggest benefit of the acquisition for CyrusOne is the ability to enhance the company's geographic diversification and access a high quality enterprise customer base. The Cervalis facilities offer CyrusOne an entrance into the Northeast, allowing the company to easily establish a presence in a market they were previously absent from. Cervalis is also handing over a large client base, with the company currently serving approximately 220 enterprise customers. Cervalis especially deals with companies in the financial services industry, include multiple Fortune 1000 companies.
"We are excited about welcoming Cervalis into the CyrusOne family, as Mike Boccardi and his team have created the premier financial services data center platform in the New York Metro area," said Gary Wojtaszek, president and chief executive officer of CyrusOne. "Cervalis is highly complementary to our existing business, strengthening our geographic footprint by establishing a presence in a very important East Coast market and providing an attractive portfolio of enterprise customers, including some of the largest financial services companies in the world."
Cervalis generated revenue of $69 million in fiscal year 2014, and in the first quarter of 2015 had already garnered $20 million. Roughly two-thirds of the company's revenue came from colocation services, while the remainder was generated through interconnection, managed services and work area recovery products.
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