Reaps $18.8 Billion in Deal Volume in a Day
Two major data-center operators agreed to be acquired Monday in deals worth a combined $18.8 billion, highlighting the fast-moving consolidation of cloud computing assets ahead of a new generation of 5G and fiber-optic network services.
(Bloomberg) -- Two major data-center operators agreed to be acquired Monday in deals worth a combined $18.8 billion, highlighting the fast-moving consolidation of cloud computing assets ahead of a new generation of 5G and fiber-optic network services.
KKR & Co. and Global Infrastructure Partners agreed to acquire data-center owner CyrusOne Inc. in a transaction valued at roughly $11.4 billion. American Tower Corp. said it would buy CoreSite Realty Corp., a data-center real estate investment trust, for about $7.4 billion. Including assumed debt, the transactions will top $25 billion.
The deals add to a sweeping consolidation among REITs that manage data centers, the complexes that provide crucial infrastructure for companies in cloud computing, such as Amazon.com Inc., Salesforce.com Inc. and Alphabet Inc. With Monday’s pair of deals, many of the independent data center companies have now found partners. Larger players such as Equinix Inc. and Digital Realty have also bulked up through acquisitions in recent years.
CyrusOne, which specializes in the design, construction and operation of more than 50 data centers, will be closely held following the close of the transaction. Shares of the Dallas-based company rose 4.7% to $89.43 at 1:57 p.m. in New York, just below the purchase price of $90.50.