CyrusOne agreed to acquire Zenium Data Centers, a leading hyperscale data center provider in Europe with four properties in London and Frankfurt, the continent’s two largest data center markets, for $442 million, reflecting a multiple of 18 times expected annualized Adjusted EBITDA of approximately $25 million from both commenced and signed but not yet billing leases. CyrusOne will also reimburse Zenium for capital expenditures between signing and closing. The two facilities in Frankfurt will be owned by CyrusOne, while the two facilities in London are leased with a remaining weighted average lease term of approximately 40 years, inclusive of renewal options.
Zenium has approximately $40 million in annualized contracted GAAP revenue, taking into account leases that are signed but not yet billing, excluding estimates for pass-through power, representing approximately $25 million in expected annualized Adjusted EBITDA. All signed contracts will have commenced by year-end 2018. Upon full buildout, the four properties will consist of more than 260,000 colocation square feet and 49.3 MW of power capacity. Approximately 54% of this power capacity, or 26.8 MW, is currently leased.
MW London Frankfurt Total
Total power capacity(1) 22.6 26.7 49.3
Total power capacity leased 9.4 17.4 26.8
% leased 42% 65% 54%
Power capacity available for lease 13.2 9.3 22.5
(1)Represents critical load power capacity available for lease upon full buildout
“This transaction establishes a significant presence for us in Europe’s two largest data center markets and provides a platform to scale to meet the strong demand across the continent,” said Gary Wojtaszek, president and chief executive officer of CyrusOne. “The Zenium team is experienced and well-respected with particular expertise leasing to hyperscale companies, and they have built an outstanding, fast-growing company. The capacity for further growth at their existing locations remains substantial, allowing us to nearly double the size of their business, and we will be able to leverage the European infrastructure to expand within London and Frankfurt and into new markets in an efficient, cost-effective manner.”
