CyrusOne buys two enterprise data centres from Sentinel

09 February 2017 |


CyrusOne has bought two data centres in the US from Sentinel Data Centers, spending $490m.

CyrusOne, the data centre real estate investment trust (REIT), has finalised an agreement to purchase two enterprise-class data centres in Raleigh-Durham, North Carolina and Somerset, New Jersey US, from Sentinel Data Centers.

The total purchase price is $490 million, excluding transaction-related expenses. This represents a multiple of approximately 14.4 times run-rate EBITDA of approximately $34 million.The transaction will close in the next 45 days.

Together, the two facilities have more than 160,000 square feet (14,864 so m) of colocation space and approximately 21 megawatts of power capacity.

Nearly 85% of the power capacity is leased. The facilities are used by 30 current customers.

"We are very excited about this transaction, which establishes a presence for us in the Southeast, adds a high-quality portfolio of large enterprise customers, and features an attractive long-term lease profile," said Gary Wojtaszek, president and CEO of CyrusOne.

Josh Rabina, Sentinel's co-founder and co-CEO, said: "We have known the CyrusOne team for almost ten years and have a great deal of respect for their organisation. They have earned an excellent reputation in the industry for customer service and quality, so we know our customers are in good hands."

CyrusOne intends to finance the acquisition with the funds made available from its forward equity sale inAugust 2016 and a recently expanded credit facility.