Dallas Data Center Firm CyrusOne Target of Takeover Interest From KKR-led Group

CyrusOne Inc. is considering a potential sale after receiving takeover interest, according to people familiar with the matter. The shares jumped.The Dallas-based data center operator is working with an adviser to evaluate strategic options after a recent approach from at least one potential suitor, said the people, who asked to not be identified because the matter isn't public.A bidder group including KKR & Co., Stonepeak Infrastructure Partners and I Squared Capital is in the preliminary stages of weighing a bid for the company, said one of the people. Other potential bidders are interested too, the people said. No decision has been made and CyrusOne could opt to remain independent, they said.CyrusOne rose as high as 7.7% on the news. The shares were up 5.7% to $68.41 at 11:18 a.m. in New York on Friday, giving the company a market value of about $7.7 billion.A representative for KKR declined to comment. Representatives for Stonepeak, I Squared and CyrusOne didn't respond to requests for comment.Founded in 2001, CyrusOne has a network of 48 data centers serving about 1,000 customers in the U.S., U.K., Singapore and Germany, according to its annual report. It is one of at least five real estate investment trusts that specialize in data centers, which help companies safely store data. Others include Equinix Inc. and Digital Realty Trust Inc.Gillian Tan and Kiel Porter, Bloomberg  Continue reading...

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