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CyrusOne Stock Leaps On $15 Billion Take-Private Bid From KKR, Global Infrastructure Partners

KKR and GIP plan to take data center-focused REIT CyrusOne private following a $15 billion takeover bid.

CyrusOne  (CONE) - Get CyrusOne Inc. Report shares leapt higher Monday after the real estate investment trust unveiled a $15 billion purchase from private equity investors KKR and Global Infrastructure Partners. 

KKR & Co., along with Global Infrastructure Partners (GIP) will pay $90.50 per share, in cash, for data-center focused CyrusOne, a near 6% premium to the group's Friday closing share price. The deal is expected to close by the second half of next year, the companies said. 

The deal followed a $7.5 billion cash bid for rival CoreSite Realty  (COR) - Get CoreSite Realty Corporation Report by American Tower Corp  (AMT) - Get American Tower Corporation Report that prices the Denver, Colorado-based group at $170 per share. 

“This transaction is a testament to the tremendous work by the entire CyrusOne team. We have built one of the world’s leading data center companies with a presence across key U.S. and international markets supporting our customers’ mission-critical digital infrastructure requirements while creating significant value for our stockholders,” said interimCEO Dave Ferdman. 

“KKR and GIP will provide substantial additional resources and expertise to accelerate our global expansion and help us deliver the timely and reliable solutions at scale that our customers value,” he added.  

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Dallas-based CyrusOne shares were marked 4.65% higher in mid-day Monday to at $89.40 each. CoreSite shares were marked 2.6% higher at $171.00 each.

Data center properties have seen increasing demand over the past year as companies look to expand their cloud computing footprints and data storage capabilities.

Earlier this year, private equity firm Blackstone Group  (BX) - Get Blackstone Inc. Report paid $6.7 billion for data center operator QTS Realty Trust  (QTS) - Get QTS Realty Trust, Inc. Class A Report in a similar transaction. 

"CyrusOne has built one of the strongest data center companies in the world and has a strong track record of development and operational expertise in addition to delivering best-in-class service to its customers," said KKR managing director Waldemar Szlezak.