CyrusOne is set to buy Cervalis to add 4 data centers and 2 work area recovery facilities in the New York Metro area, for nearly $400 million.
When completed, the transaction will expand CyrusOne’s existing portfolio to 31 data centers across 12 distinct markets (10 cities in the U.S., London and Singapore).
Gary Wojtaszek, president and chief executive officer of CyrusOne, said: “Their focus on serving the needs of the largest financial enterprise customers in the world will be a valuable complement to CyrusOne, and we look forward to working together to continue to grow the combined business and create value for our shareholders.”
Michael Boccardi, president and chief executive officer of Cervalis, said: “The strength will provide an opportunity to further accelerate the success we have had in the financial services industry and provide our existing customers the ability to grow outside of the New York metropolitan region into CyrusOne’s global platform.”
In 2014, Cervalis generated revenues of nearly $70 million, with approximately two-thirds being derived from colocation services, and the remainder from interconnection, managed services, and work area recovery products.
As of the end of 2014, 77 percent of the colocation square feet within the Cervalis Facilities was utilized. In addition to the currently available raised floor space, it currently has capacity under shell to deliver an incremental 55,000 colocation square feet.