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The following content is from an older version of this website, and may not display correctly.Cincinnati Bell Inc. ABRY Partners have entered into a definitive agreement for Cincinnati Bell to acquire data center operator CyrusOne in a cash transaction valued at approximately $525 million.
CyrusOne is a colocation and data center services to Fortune 500 companies, and the largest privately held data center operator based in the state of Texas.
CyrusOne will become a wholly-owned subsidiary of Cincinnati Bell, retaining its brand and executive management team.
The acquisition of CyrusOne will be transformative for Cincinnati Bell's data center business, increasing the scale and scope by adding seven best-in-class data centers in Houston, Dallas, and Austin with a total of 163,000 square feet of data center capacity.
Cincinnati Bell's Technology Solutions segment will have a combined total of 609,000 square feet of data center capacity in 17 best-in-class facilities.
"Data center services are a key strategic focus for Cincinnati Bell, allowing the company to provide next generation computing and communications services for our customers," said Jack Cassidy, president and chief executive officer of Cincinnati Bell.
"The success of this strategy is evidenced by our ability to organically build the Technology Solutions segment of our business into a $300 million run rate revenue operation."
"Two important trends driving growth in data center services are rapid adoption of internet related technologies by our enterprise customers to run their most important business functions, and the accelerating demand for outsourced solutions that allow them to better focus on their core business.
The addition of CyrusOne will transform our existing data center operations, particularly in the area of colocation services."
Enhanced Competitive Presence CyrusOne has a diverse and growing customer base that is dominated by Fortune 500 global and domestic blue-chip companies.
Specializing in colocation services, CyrusOne has grown its revenue base over 60 percent annually over the past several years by serving the needs of large customers in key vertical markets such as oil and gas; energy; technology; financial services; healthcare; and mining and manufacturing industries.
"Cincinnati Bell's commitment to invest growth capital in the data center market and demonstrated success in serving the technology needs of enterprises makes them an ideal match for CyrusOne," said Dave Ferdman, CyrusOne president and chief executive officer.
"Our two companies share many common values including an intense focus on innovation and providing an exceptional customer experience. The combined companies will be better positioned to meet both our customers' growth needs."
Mr. Cassidy added that the acquisition of CyrusOne will position Cincinnati Bell as a premier data center colocation provider to the Fortune 500 with the goal of providing these companies with a data center solution that solves the needs of a multinational company.
"Many of CyrusOne and Cincinnati Bell Technology Solutions' larger enterprise customers have already indicated a desire to expand their data center colocation presence in the U.S. and ultimately globally," explained Cassidy.
"The combined data center footprint of our two organizations, strong reputation for operational excellence, and solid capital base will allow us to quickly gain the scale required to meet the needs of these customers.
This in turn enables the customer to reduce costs and focus time, capital and resources on driving growth in their business."
CyrusOne is a colocation and data center services to Fortune 500 companies, and the largest privately held data center operator based in the state of Texas.
CyrusOne will become a wholly-owned subsidiary of Cincinnati Bell, retaining its brand and executive management team.
The acquisition of CyrusOne will be transformative for Cincinnati Bell's data center business, increasing the scale and scope by adding seven best-in-class data centers in Houston, Dallas, and Austin with a total of 163,000 square feet of data center capacity.
Cincinnati Bell's Technology Solutions segment will have a combined total of 609,000 square feet of data center capacity in 17 best-in-class facilities.
"Data center services are a key strategic focus for Cincinnati Bell, allowing the company to provide next generation computing and communications services for our customers," said Jack Cassidy, president and chief executive officer of Cincinnati Bell.
"The success of this strategy is evidenced by our ability to organically build the Technology Solutions segment of our business into a $300 million run rate revenue operation."
"Two important trends driving growth in data center services are rapid adoption of internet related technologies by our enterprise customers to run their most important business functions, and the accelerating demand for outsourced solutions that allow them to better focus on their core business.
The addition of CyrusOne will transform our existing data center operations, particularly in the area of colocation services."
Enhanced Competitive Presence CyrusOne has a diverse and growing customer base that is dominated by Fortune 500 global and domestic blue-chip companies.
Specializing in colocation services, CyrusOne has grown its revenue base over 60 percent annually over the past several years by serving the needs of large customers in key vertical markets such as oil and gas; energy; technology; financial services; healthcare; and mining and manufacturing industries.
"Cincinnati Bell's commitment to invest growth capital in the data center market and demonstrated success in serving the technology needs of enterprises makes them an ideal match for CyrusOne," said Dave Ferdman, CyrusOne president and chief executive officer.
"Our two companies share many common values including an intense focus on innovation and providing an exceptional customer experience. The combined companies will be better positioned to meet both our customers' growth needs."
Mr. Cassidy added that the acquisition of CyrusOne will position Cincinnati Bell as a premier data center colocation provider to the Fortune 500 with the goal of providing these companies with a data center solution that solves the needs of a multinational company.
"Many of CyrusOne and Cincinnati Bell Technology Solutions' larger enterprise customers have already indicated a desire to expand their data center colocation presence in the U.S. and ultimately globally," explained Cassidy.
"The combined data center footprint of our two organizations, strong reputation for operational excellence, and solid capital base will allow us to quickly gain the scale required to meet the needs of these customers.
This in turn enables the customer to reduce costs and focus time, capital and resources on driving growth in their business."