CyrusOne buys Zenium Data Centers for $442m

Company adds more than 260,000 colocation sqf and 49.3MW of power capacity to its portfolio which now amounts to 48 properties worldwide.

The data centre market experienced in 2017 a record breaking M&A wave that lasted up to the last hour with CyrusOne (NASDAQ:CONE) announcing the acquisition of Zenium Data Centers for $442m.

To purchase the European operator, CyrusOne entered into a definitive agreement with Quantum Strategic Partners Ltd., a private investment fund managed by Soros Fund Management LLC and certain other sellers named therein who manage Zenium’s assets.

Zenium is a hyperscale data centre provider with four properties in London and Frankfurt which combined provide more than 260,000 colocation sqf and 49.3MW of power capacity. Approximately 54% of the power capacity, or 26.8 MW, is currently leased.

The purchase price of $442m, reflects a multiple of 18 times expected annualised Adjusted EBITDA of approximately $25m from both commenced and signed but not yet billing leases.

CyrusOne will also reimburse Zenium for capital expenditures between signing and closing. The transaction is expected to close in Q1 2018, subject to the fulfilment of customary closing conditions including applicable regulatory approvals.

Gary Wojtaszek, president and chief executive officer of CyrusOne, said: “This transaction establishes a significant presence for us in Europe’s two largest data centre markets and provides a platform to scale to meet the strong demand across the continent.

“The Zenium team is experienced and well-respected with particular expertise leasing to hyperscale companies, and they have built an outstanding, fast-growing company.

“The capacity for further growth at their existing locations remains substantial, allowing us to nearly double the size of their business, and we will be able to leverage the European infrastructure to expand within London and Frankfurt and into new markets in an efficient, cost-effective manner.”

Franek Sodzawiczny, Zenium’s founder and chief executive officer, said: “We are thrilled to join the CyrusOne team and believe that their unique capabilities and strong customer relationships, particularly among hyperscale companies, will accelerate growth across the existing European portfolio.

“We look forward to realizing the benefits of our combined expertise and similar operating philosophies as we continue to broaden CyrusOne’s footprint to capture growing European demand.”