CyrusOne to buy Zenium Data Centers from Quantum

CyrusOne Inc. (NASDAQ:CONE) said it has reached a definitive agreement with Quantum Strategic Partners Ltd. (Quantum), a private investment fund managed by Soros Fund Management LLC and other sellers, to purchase Zenium Data Centers for $442 million. CyrusOne says the sale price reflects a multiple of 18 times expected annualized adjusted EBITDA of approximately $25 million from both commenced and signed, but not yet billing, leases.

CyrusOne Inc. (NASDAQ:CONE) said it has reached a definitive agreement with Quantum Strategic Partners Ltd. (Quantum), a private investment fund managed by Soros Fund Management LLC and other sellers, to purchase Zenium Data Centers for $442 million.

CyrusOne, a global data center real estate investment trust (REIT), says the sale price reflects a multiple of 18 times expected annualized adjusted EBITDA of approximately $25 million from both commenced and signed, but not yet billing, leases. CyrusOne will also reimburse Zenium for capital expenditures between signing and closing. The company expects to close the transaction in the first quarter of 2018, subject to customary closing conditions, including applicable regulatory approvals.

Zenium Data Centers is a European hyper-scale data center provider with four properties in London and Frankfurt, which CyrusOne asserts are the continent's two largest data center markets. News of the Zenium Data Center sale follows an announcement in October that Equinix had purchased Zenium's data center in Istanbul from the existing shareholders in an all-cash transaction for $93 million (see "Equinix acquires the Zenium data center in Istanbul, closes Itconic deal").

"This transaction establishes a significant presence for us in Europe's two largest data center markets and provides a platform to scale to meet the strong demand across the continent," said Gary Wojtaszek, CyrusOne president and chief executive officer. "The Zenium team is experienced and well-respected with particular expertise leasing to hyperscale companies, and they have built an outstanding, fast-growing company. The capacity for further growth at their existing locations remains substantial, allowing us to nearly double the size of their business, and we will be able to leverage the European infrastructure to expand within London and Frankfurt and into new markets in an efficient, cost-effective manner."

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