KKR, GIP to take CyrusOne private for US$11.5bn

KKR & Co Inc and Global Infrastructure Partners (GIP) are in the process of taking U.S. data center operator CyrusOne Inc. private in a deal valued at US$11.49 billion in cash. The latest big-money deal in a sector that has experienced a significant boom during the COVID-19 health crisis.

The coronavirus-driven transition to the remote working trend has made the usage of cloud-based services more popular, driving up demand for data centers that can facilitate the digital infrastructure.

KKR and GIP plan to pay US$90.50 for each CyrusOne share according to the deal published on Monday, marking a 5.9% premium to the firm’s last closing price. CyrusOne shares increased 3.6%.

The buyout brings the Dallas-headquartered firm’s valuation to about US$15 billion including debt. The firm currently has over 50 data centers globally.

In a similar move, real estate investment trust American Tower reached a deal for the purchase of CyrusOne’s key competition CoreSite Realty Corp for US$7.5 billion.

Infrastructure and real estate funds have also scooped up data center assets in recent months to capitalize on the demand surge.