OFFERING 25% PREMIUM ON STOCK PRICE
Data center REIT CyrusOne Inc., has just announced reaching a definitive agreement to sell all its outstanding shares to Global Infrastructure Partners (GIP) and global investment firm KKR in an all-cash transaction valued at approximately $15 billion, including the assumption of debt.
Pursuant to the agreement, KKR and GIP will acquire all outstanding shares of CyrusOne’s common stock for $90.50 per share in an all-cash transaction, a premium of approximately 25% to the company’s closing stock price of $72.57 on September 27, 2021.
“This transaction is a testament to the tremendous work by the entire CyrusOne team. We have built one of the world’s leading data center companies with a presence across key U.S. and international markets supporting our customers’ mission-critical digital infrastructure requirements while creating significant value for our stockholders . KKR and GIP will provide substantial additional resources and expertise to accelerate our global expansion and help us deliver the timely and reliable solutions at scale that our customers value,” said Dave Ferdman, Co-Founder and interim President/Chief Executive Officer of CyrusOne.
CyrusOne current portfolio include the design, construction and operation of more than 50 data centers across the globe, and upon completion of the transaction, CyrusOne and its assets will be wholly owned by KKR and GIP as it becomes a privately held company – delisting its common stock from any public market.
“CyrusOne has built one of the strongest data center companies in the world and has a strong track record of development and operational expertise in addition to delivering best-in-class service to its customers,” said Waldemar Szlezak, Managing Director at KKR, and Will Brilliant, Partner at GIP.
“We are excited to work together with the Company’s proven team to build on CyrusOne’s market leadership and support their customers’ growing data center infrastructure requirements. We see numerous opportunities ahead to continue expanding CyrusOne’s footprint across key global digital gateway markets and look forward to leveraging our global resources, access to long term capital and deep expertise to support the Company’s growth.”
As announced, the transaction, which was unanimously approved by the CyrusOne Board of Directors, is not subject to a financing condition and is expected to close in Q2 2022, however, subject to satisfaction of customary closing conditions, including regulatory approvals and approval by CyrusOne stockholders.