Cincinnati Bell's (NYSE: CBB) CEO Jack Cassidy last week proclaimed that data centers are one of its new service growth engines, and he's making good on that vision by acquiring Texas-based data center provider CyrusOne from ABRY Partners for about $525 million in cash.
By acquiring CyrusOne, Cincinnati Bell will instantly expand its data center presence--a growing element of its Technology Solutions business--to 609,000 square feet with seven Texas-based facilities in Houston, Dallas and Austin giving it a total of 17 centers.
"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," CEO Jack Cassidy said in a statement. Technology Solutions generates $300 million in yearly revenue for Cincinnati Bell.
Cincinnati Bell says the acquisition should be completed in June. To complete the deal, Cincinnati Bell has gotten commitments for a $970 million senior secured credit facility to fund the purchase price of the deal, refinance its existing revolver and term loans, pay fees and expenses incurred with the acquisition, and obtain financing for company working capital.
For more:
- see the release here
- The Cincinnati Enquirer has this article
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