Data-center valuations enter the metaverse

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Data-center valuations enter the metaverse
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CyrusOne has struck a deal with buyout firm KKR for a rich $15 bln, while peer CoreSite is selling itself to American Tower for $10 bln. Both deals show how financial and industrial buyers are banking on the arrival of the metaverse: JMAGuilford

CyrusOne said on Nov. 15 that it had agreed to be acquired by private equity firm KKR for $90.50 per share, or around $15 billion in total including the U.S. data-center operator’s debt.

The price is a 25% premium to CyrusOne’s undisturbed market value, the company said. Reuters had reported in September that the company was exploring a sale. American Tower said on the same day that it would buy CoreSite Realty, another U.S. data-center company, for $170 per share, equivalent to $7.5 billion, in cash. Including CoreSite’s debt, the deal is worth $10.1 billion.

CoreSite runs 25 data centers and makes annual revenue of $655 million, based on the third-quarter numbers, with EBITDA of $343 million.Servers for data storage are seen at Advania's Thor Data Center in Hafnarfjordur, Iceland August 7, 2015.

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