Data center operator Cyxtera plans to sell • The Register
Data center operator Cyxtera is considering putting itself up for sale, according to reports.
The company has facilities at 61 locations in North America, Asia Pacific and Europe, including London Docklands, and is a major player in data center colocation and interconnection services.
According to Bloomberg, Cyxtera is exploring strategic options, including a sale, and is working with advisers as it considers open alternatives to the business, citing unnamed sources who requested anonymity.
Cyxtera completed a merger with Starboard Value Acquisition Corp, a special purpose acquisition company (SPAC), last year to grow and support other strategic go-to-market efforts, the company told the time. The company received approximately $493 million from the transaction before fees, expenses and amortization of debt.
Advisers working with Cyxtera to explore its next options have not been identified, but Citi Group and Morgan Stanley served Cyxtera in the merger last year.
The potential sale could be part of the recent surge in the data center market. Last year, two huge US data center real estate investment funds, CyrusOne and CoreSite, were acquired in deals worth $15 billion and $10.1 billion, respectively. That in itself may be in response to a boom in demand for data centers and colocation space, with record uptake – or capacity uptake – for the whole of 2021, up 50% from 2020, according to a recent CBRE report.
Last month, Bloomberg also reported that data center operator Switch was exploring strategic options, including a sale.
More recently, Japanese giant NTT announced a partnership with Australian asset management company Macquarie to help it accelerate the construction of data centers in Europe and North America.
Cyxtera has a market value of approximately $2.3 billion and reported total revenue of $703.7 million for 2021, an increase of $13.2 million from the prior year . However, it reported a net loss for the year of $257.9 million. In its forecast for 2022, the company expected to achieve revenue of $730-760 million, an increase of 4-8%. ®