CyrusOne to Acquire Two Data Centers from Sentinel Data Centers

2/6/17

DALLAS--(BUSINESS WIRE)--CyrusOne Inc. (NASDAQ:CONE), a premiere global data center REIT, announced today the execution of a definitive agreement to purchase two enterprise-class data centers located in Raleigh-Durham, North Carolina and Somerset, New Jersey from Sentinel Data Centers. The total purchase price is $490 million, excluding transaction-related expenses. This represents a multiple of approximately 14.4 times pro forma run-rate annualized EBITDA of approximately $34 million.

“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.”

“We are thrilled to be able to announce this transaction,” said Todd Aaron, Sentinel’s co-founder and co-CEO. “We have a fantastic set of customers and investors, and we believe this to be a win-win for both of them.”

“We have known the CyrusOne team for almost ten years and have a great deal of respect for their organization,” said Josh Rabina, Sentinel’s co-founder and co-CEO. “They have earned an excellent reputation in the industry for customer service and quality, so we know our customers are in good hands.”

CyrusOne intends to finance the acquisition with proceeds from its forward equity sale completed last August 2016 and its recently expanded credit facility. The transaction is expected to close in the next 30 to 45 days, subject to the fulfillment of customary closing conditions.

Transaction Highlights

When completed the transaction will add two high-quality data centers serving the Southeast and Northeast, complementing CyrusOne’s existing data center platform. In 2016, the Facilities 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 megawatts (“MW”) of power capacity, with nearly 85% of the power capacity leased. The Facilities will be owned by CyrusOne.

Recent Deals

Interested in advertising your deals? Contact Edwin Warfield.