DALLAS--(BUSINESS WIRE)--CyrusOne Inc. (“CyrusOne”) (NASDAQ: CONE), a premier global data center REIT, today announced that it has closed its previously announced acquisition of Zenium Data Centers (“Zenium”), a leading hyperscale data center provider with properties in London and Frankfurt, Europe’s two largest data center markets.
“We are excited to take this important step in establishing a European footprint at a time when our customers are expanding globally and demand across the continent is accelerating, particularly for larger deployments,” said Gary Wojtaszek, president and chief executive officer of CyrusOne. “We believe there is a tremendous opportunity as the market continues to evolve rapidly. With this acquisition, as well as additional development sites we have in process in key markets across Europe, we will be very well positioned to help our customers as their business requirements grow, while creating significant value for our shareholders.”
“We are thrilled to enter the European marketplace through the milestone closing of the Zenium acquisition,” said Jonathan Schildkraut, executive vice president and chief strategy officer of CyrusOne. “By the end of 2019, we expect our European platform to provide nearly 250 megawatts of potential data center inventory, inclusive of both the Zenium platform together with our organic site development efforts, spread across four major markets, giving us one of the largest platforms in Europe. With this closing achieved, we will now broaden our expansion efforts to include additional markets in other key geographies across the globe.”
The acquisition of Zenium is the critical first step of CyrusOne’s previously announced European expansion strategy. The European data center market is growing quickly with strong demand for larger deployments, a market segment for which CyrusOne has unique expertise and capabilities. Take-up across London, Frankfurt, Amsterdam and Paris in the first half of 2018 was 87 megawatts (“MW”), up 50% from the first half of 2017.
The Zenium portfolio includes four operating properties in London and Frankfurt with nearly 20 MW of critical load capacity available for lease-up, as well as additional development sites in London and Frankfurt with the potential to add an incremental 31 MW of critical load capacity upon full build-out.
The transaction meaningfully accelerates CyrusOne’s ability to address the increasingly global needs of its existing customers. At the same time, the Company’s expanding footprint will allow CyrusOne to more effectively compete for opportunities from potential customers looking for a single provider with a geographically diverse presence. CyrusOne also expects to benefit from significant operating leverage as the combined company expands within these markets as well as into new markets. CyrusOne currently has development sites in process across London, Dublin, Frankfurt and Amsterdam that, when combined with Zenium, would result in a total prospective European footprint of nearly 250 MW.
CyrusOne financed the Zenium acquisition with proceeds from its $300 million delayed draw term loan and borrowings under its $1.7 billion revolving credit facility. CyrusOne also assumed approximately $85 million of debt outstanding under Zenium’s EUR-denominated credit facility.
Forward Looking Statements
This release contains forward-looking statements regarding future events and our future results that are subject to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, are statements that could be deemed forward-looking statements. These statements are based on current expectations, estimates, forecasts and projections about the industries in which we and our customers operate and the beliefs and assumptions of our management. Words such as "expects," "anticipates," "predicts," "projects," "intends," "plans," "believes," "seeks," "estimates," "continues," "endeavors," "strives," "may," “will”, variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, any statements that refer to projections of our future financial or operating performance, our anticipated growth and trends in our and our customers’ industries and businesses, and other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned these forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties, which could cause our actual results to differ materially and adversely from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the Company’s ability to successfully integrate the Zenium acquisition and execute and integrate its organic site acquisition and further expansion initiatives, and those discussed in other documents we file with the Securities and Exchange Commission (SEC). More information on potential risks and uncertainties is available in our recent filings with the SEC, including CyrusOne's Form 10-K report, Form 10-Q reports, and Form 8-K reports. Actual results may differ materially and adversely from those expressed in any forward-looking statements. Forward-looking statements made in this release speak only as of the date of this release and we undertake no obligation to revise or update any forward-looking statements for any reason.
CyrusOne (NASDAQ: CONE) is a high-growth real estate investment trust (REIT) specializing in highly reliable enterprise-class, carrier-neutral data center properties. The Company provides mission-critical data center facilities that protect and ensure the continued operation of IT infrastructure for approximately 1,000 customers, including 201 Fortune 1000 companies.
With a track record of meeting and surpassing the aggressive speed-to-market demands of hyperscale cloud providers, as well as the expanding IT infrastructure requirements of the enterprise, CyrusOne provides the flexibility, reliability, security, and connectivity that foster business growth. CyrusOne offers a tailored, customer service-focused platform and is committed to full transparency in communication, management, and service delivery throughout its 43 data centers worldwide. Additional information about CyrusOne can be found at www.CyrusOne.com.