CyrusOne Buy’s Sentinel’s Two Biggest Data Centers

February 6th, 2017 by · Leave a Comment

Another data center acquisition this Monday morning, and it's a bigger one.  CyrusOne has agreed to buy two data centers from Sentinel Data Centers.

CyrusOne is buying both NC-1 in Raleigh Durham and NJ-1 in Somerset, New Jersey.  The former is their first entry into the North Carolina market, while the latter will complement their NYC suburban presence further north in Totowa, NJ and up in the Hudson River valley in Wappingers Falls, NY.

Combined, the two facilities have built-out space of 160,000 square feet and 21MW, but there is plenty of room for expansion.  Sentinel NC-1 spans 420,000 raw square feet, while NJ-1 is ever so slightly larger at 430,000 square feet.  In terms of actual colo space, CyrusOne expects it could add another 230,000 square feet and 37MW.

The deal will leave Sentinel with two smaller, single-tenant data centers in Orangeburg NY and in Memphis TN.  Those don't fit CyrusOne's profile, and so it's not a surprise they aren't part of the deal.  But I wouldn't be surprised if Sentinel decided to sell those as well.

The purchase price is $490M, and the two facilities have run-rate annualized EBITDA of about $34M on revenues of around $50M.  CyrusOne expects to close the transaction in 30-45 days, and will use the proceeds from an earlier forward equity sale and its recently expanded credit facility to finance the purchase.

 

Categories: Datacenter · Mergers and Acquisitions

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