The data center provider CyrusOne made a significant inorganic move today, announcing the acquisition of privately-held Cervalis. The deal gives CyrusOne its first presence in the northeast, by which we mean the New York City metro area of course and an increased penetration of the financial vertical.
Cervalis operates four data centers and two work area recovery facilities around NYC, specifically in Totowa NJ, and Stamford and Norwalk, CT, and in Wappingers Falls a little ways up the Hudson in NY state. The facilities combined feature 125,000 square feet of colo and 100,000 square feet of work area recovery space, with another 55,000 square feet of space for colo to expand into. In 2014 the company had $70M in revenue, two thirds of which came from colocation, and had been growing at about 14%.
The price tag will be $400M in cash, for which CyrusOne has commitments in place from KeyBank. The deal is expected to close within 45-60 days, or before the end of the second quarter. With the Northeast now under its wing, perhaps the west coast is next for CyrusOne?
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