Potential Sale Of Data Center Provider CyrusOne Sends Stock Soaring
CyrusOne’s stock is trading at an all-time high Friday afternoon following a report by Bloomberg of a potential sale of the fast-growing data center provider.
CyrusOne stock is up 8 percent Friday afternoon trading at an all-time high of around $70 per share after a report by Bloomberg that the data center operator is looking to sell.
Dallas, Texas-based CyrusOne operates more than 45 data centers across the U.S., Europe and Asia, and has been one of the strongest players in data center M&A over the past few years, according to Synergy Research Group.
Citing people familiar with the matter, Bloomberg is reporting that CyrusOne is considering a sale after receiving takeover interest. The company did not respond for comment by press time.
Bloomberg said CyrusOne is working with an adviser to evaluate strategic options after being approached from at least one potential suiter. A bidder group including Stonepeak Infrastructure Partners, KKR & Co., and I Squared Capital are in the early stages of weighing a bid for CyrusOne, according to Bloomberg.
CyrusOne, named in CRN’s 2018 Data Center 100 list, is a real estate investment trust that invests in carrier-neutral data centers and provides colocation services. The company provides mission-critical data centers that protects and ensure the continued operation of IT infrastructure for approximately 1,000 customers including more than 200 Fortune 1,000 companies.
This year, the fast-growing global data center provider said it was building a campus in Santa Clara, Calif. that will be the largest mission-critical data center concentration in Silicon Valley. CyrusOne acquired 8 acres of land to build the new data center that is adjacent to another parcel of land where construction for another separate data center is already underway.
Construction is currently underway to build a new CyrusOne facility in the data center hub of Sterling, Northern Virginia.
— CyrusOne (@Cyrusone) July 25, 2019
In 2016, CyrusOne was able to construct a 30-megawatt data center in Northern Virginia in less than six months. In August 2018, the company completed the acquisition of four Zenium data centers. Additionally, the data center provider bought land last year in Dallas and the Netherlands to build new facilities on. CyrusOne also expects a new site in Frankfurt, Germany to be completed by 2020.
CyrusOne has a track record of fulfilling the demands of hyperscale cloud providers, offering a customer service-focused platform.