Colocation firm Cyxtera may put itself up for sale
(2022/04/07)
- Reference: 1649347213
- News link: https://www.theregister.co.uk/2022/04/07/cyxtera_sale_report/
- Source link:
Datacenter operator [1]Cyxtera is considering putting itself up for sale, according to reports.
The firm has facilities at 61 locations across North America, Asia Pacific and Europe, including London's Docklands, and is an important player in datacenter colocation and interconnection services.
According to [2]Bloomberg , Cyxtera is said to be exploring strategic options including a sale, and is working with advisors as it considers alternatives open to the company, citing unnamed sources that requested anonymity.
[3]
Cyxtera last year completed a merger with Starboard Value Acquisition Corp, a special purpose acquisition company (SPAC), in order to grow and support further strategic go-to-market efforts, the firm stated at the time. The company received approximately $493 million from the transaction before fees, expenses, and debt amortization.
[4]
[5]
The advisors working with Cyxtera to explore its next options have not been identified, but Citi Group and Morgan Stanley served Cyxtera during last year's merger.
[6]Tomorrow Water thinks we should colocate datacenters and sewage plants
[7]Equinix cuts $705m check for Chilean, Peruvian datacenters
[8]Telehouse adds fifth datacenter to Docklands campus in London, UK
[9]Boom times for North America's big datacenter real estate market
The potential sale could be part of the recent hotting up of the datacenter market. Last year, two massive US datacenter real estate investment trusts, CyrusOne and CoreSite, were [10]acquired in deals worth $15 billion and $10.1 billion respectively . This itself may be in response to a boom in demand for datacenter and colocation space, with record absorption – or uptake of capacity – for the whole of 2021, up 50 percent over 2020, [11]according to a recent report from CBRE.
Last month, Bloomberg also reported that datacenter operator Switch was exploring strategic options including a sale.
More recently, Japanese giant NTT announced a partnership with Australian asset management outfit Macquarie to help it [12]accelerate datacenter builds in Europe and North America.
[13]
Cyxtera has a market value of about $2.3 billion, and reported full year total revenue of $703.7 million for 2021, an increase of $13.2 million over the previous year. However, it reported a net loss for the year of $257.9 million. In its guidance for 2022, the firm was expecting to achieve revenue of $730-$760 million, a 4 to 8 percent increase. ®
Get our [14]Tech Resources
[1] https://www.cyxtera.com/
[2] https://www.bloomberg.com/news/articles/2022-04-06/data-center-operator-cyxtera-said-to-explore-sale-among-options
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Yk9fFZ6RwyuCgOm@hhNjVAAAAFg&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Yk9fFZ6RwyuCgOm@hhNjVAAAAFg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
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[6] https://www.theregister.com/2022/04/02/datacenter_sewage_colocation/
[7] https://www.theregister.com/2022/03/18/equinix_santiago_datacenters/
[8] https://www.theregister.com/2022/03/28/telehouse_adds_fifth_datacenter/
[9] https://www.theregister.com/2022/03/25/us_datacenter_boom/
[10] https://www.theregister.com/2021/11/16/cyrusone_coresite/
[11] https://www.theregister.com/2022/03/25/us_datacenter_boom/
[12] https://www.theregister.com/2022/04/04/ntt_data_centres_macquarie_deal/
[13] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Yk9fFZ6RwyuCgOm@hhNjVAAAAFg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[14] https://whitepapers.theregister.com/
The firm has facilities at 61 locations across North America, Asia Pacific and Europe, including London's Docklands, and is an important player in datacenter colocation and interconnection services.
According to [2]Bloomberg , Cyxtera is said to be exploring strategic options including a sale, and is working with advisors as it considers alternatives open to the company, citing unnamed sources that requested anonymity.
[3]
Cyxtera last year completed a merger with Starboard Value Acquisition Corp, a special purpose acquisition company (SPAC), in order to grow and support further strategic go-to-market efforts, the firm stated at the time. The company received approximately $493 million from the transaction before fees, expenses, and debt amortization.
[4]
[5]
The advisors working with Cyxtera to explore its next options have not been identified, but Citi Group and Morgan Stanley served Cyxtera during last year's merger.
[6]Tomorrow Water thinks we should colocate datacenters and sewage plants
[7]Equinix cuts $705m check for Chilean, Peruvian datacenters
[8]Telehouse adds fifth datacenter to Docklands campus in London, UK
[9]Boom times for North America's big datacenter real estate market
The potential sale could be part of the recent hotting up of the datacenter market. Last year, two massive US datacenter real estate investment trusts, CyrusOne and CoreSite, were [10]acquired in deals worth $15 billion and $10.1 billion respectively . This itself may be in response to a boom in demand for datacenter and colocation space, with record absorption – or uptake of capacity – for the whole of 2021, up 50 percent over 2020, [11]according to a recent report from CBRE.
Last month, Bloomberg also reported that datacenter operator Switch was exploring strategic options including a sale.
More recently, Japanese giant NTT announced a partnership with Australian asset management outfit Macquarie to help it [12]accelerate datacenter builds in Europe and North America.
[13]
Cyxtera has a market value of about $2.3 billion, and reported full year total revenue of $703.7 million for 2021, an increase of $13.2 million over the previous year. However, it reported a net loss for the year of $257.9 million. In its guidance for 2022, the firm was expecting to achieve revenue of $730-$760 million, a 4 to 8 percent increase. ®
Get our [14]Tech Resources
[1] https://www.cyxtera.com/
[2] https://www.bloomberg.com/news/articles/2022-04-06/data-center-operator-cyxtera-said-to-explore-sale-among-options
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Yk9fFZ6RwyuCgOm@hhNjVAAAAFg&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Yk9fFZ6RwyuCgOm@hhNjVAAAAFg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Yk9fFZ6RwyuCgOm@hhNjVAAAAFg&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://www.theregister.com/2022/04/02/datacenter_sewage_colocation/
[7] https://www.theregister.com/2022/03/18/equinix_santiago_datacenters/
[8] https://www.theregister.com/2022/03/28/telehouse_adds_fifth_datacenter/
[9] https://www.theregister.com/2022/03/25/us_datacenter_boom/
[10] https://www.theregister.com/2021/11/16/cyrusone_coresite/
[11] https://www.theregister.com/2022/03/25/us_datacenter_boom/
[12] https://www.theregister.com/2022/04/04/ntt_data_centres_macquarie_deal/
[13] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Yk9fFZ6RwyuCgOm@hhNjVAAAAFg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[14] https://whitepapers.theregister.com/
The Doc hit the spot
VoiceOfTruth
-> loading the operation with more debt
The same thing happened with high street shops (AKA commercial real estate). Landlords up to their ears in debt shovel it onto the shops. The shops shut up shop where possible and trade online. If you want to know why the high street in X town looks the same as Y town, it's due to greed.
Re: The Doc hit the spot
FILE_ID.DIZ
And given the performance of SPACs in general - you know this will be a win for the new shareholders, not.
Just a nice windfall for the SPAC founders.
"hotting up of the datacenter market"
Does this mean that datacentre investors aren't content to just collect dividends? Do they want to sell on and on, loading the operation with more debt each time until the operation collapses under its own weight those who financed the last sale have effectively put money they'll never get back into the pockets of all the previous owners?