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CyrusOne Jumps on $15 Billion Deal with KKR, GIP to Go Private

Published 11/15/2021, 11:52 PM
© Reuters.
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By Dhirendra Tripathi

Investing.com – CyrusOne stock (NASDAQ:CONE) surged 4.5% Monday as the company said it is selling itself to KKR (NYSE:KKR) & Co and Global Infrastructure Partners in a $15 billion all-cash deal.

CyrusOne is a real-estate investment trust that designs, builds and operates data centers. It owns more than 50 centers in North America, South America and Europe, serving around 1,000 customers. The business is booming as companies turn digital and people seek more solutions, from retail to travel to education, online.

The company currently has a market cap of $10.84 billion and the stock hit a high of $89.30 so far in today’s session, a shade away from the $90.50 the buyers are paying for each share.

The transaction, expected to close in the second quarter of 2022, will result in CyrusOne turning into a privately-held company.

CyrusOne revenue in the third quarter was $304 million, up over 15%. It raised its guidance for the year and now sees its annual total revenue at $1.19 billion at midpoint, up from its previous guidance of $1.17 billion at center of the range and higher than 2020’s $1.03 billion.

 

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