In fiscal year 2014 and the first quarter of 2015, Cervalis generated revenue of $69 million and $20 million, respectively, with approximately two-thirds being derived from colocation services, and the remainder from interconnection, managed services, and work area recovery products. As of the end of the first quarter of 2015, 78% of the colocation square feet within the Cervalis Facilities was utilized. In addition to the currently available raised floor space, it currently has capacity under shell to deliver an incremental 50,000 colocation square feet.The transaction is expected to provide additional benefits to CyrusOne, including the following:
- Enhanced Geographic Diversification: The combination greatly enhances CyrusOne's geographic diversification, establishing a presence in the Northeast with the addition of a platform that includes four data centers in the New York metropolitan market.
- Access to a High Quality Enterprise Customer Base: Cervalis serves approximately 220 enterprise customers, with a particular niche servicing some of the world's largest financial institutions, including several Fortune 1000 companies. Approximately two-thirds of its first quarter 2015 revenue came from customers within the financial services industry.
- Strengthened Product Portfolio: The transaction provides a set of interconnected data centers in one of the world's largest internet hubs, further enhancing the attractiveness of CyrusOne's National IX platform. Access to a high-end managed services offering provides a platform that can be selectively leveraged across CyrusOne's existing customer base to accelerate growth.
Safe HarborThis release contains forward-looking statements regarding future events and our future results that are subject to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, are statements that could be deemed forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which we operate and the beliefs and assumptions of our management. Words such as "expects," "anticipates," "predicts," "projects," "intends," "plans," "believes," "seeks," "estimates," "continues," "endeavors," "strives," "may," variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, any statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances are forward-looking statements. Examples of forward-looking statements include, but are not limited to: (i) statements about the benefits of CyrusOne's acquisition of the Facilities, including future financial and operating results, enhanced utilization of the Facilities, expected cost savings, enhanced revenues and accretion to reported earnings and funds from operations that may be realized from the acquisition; (ii) statements of plans, objectives and expectations of CyrusOne or its management, including the expected timing of completion of the transaction; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements and other statements that are not historical facts. Readers are cautioned these forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause our actual results to differ materially and adversely from those reflected in the forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to: (i) the risk that the Facilities will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; (ii) the risk that the expected increased revenues, funds from operations and net income may not be fully realized or may take longer to realize than expected; (iii) the risk that the cost savings and any other synergies from the transaction may not be fully realized or may take longer to realize than expected; and (iv) disruption from the transaction making it more difficult to maintain relationships with customers, employees or suppliers. More information on potential risks and uncertainties related to our business is available in our recent filings with the SEC, including CyrusOne's Form 10-K report, Form 10-Q reports, and Form 8-K reports. Actual results may differ materially and adversely from those expressed in any forward-looking statements. We undertake no obligation to revise or update any forward-looking statements for any reason.
About CyrusOneCyrusOne (NASDAQ:CONE) specializes in highly reliable enterprise-class, carrier-neutral data center properties. The company provides mission-critical data center facilities that protect and ensure the continued operation of IT infrastructure for nearly 900 customers, including nine of the Fortune 20 and over 160 of the Fortune 1000 or equivalent-sized companies. CyrusOne's data center offerings provide the flexibility, reliability, and security that enterprise customers require and are delivered through a tailored, customer service-focused platform designed to foster long-term relationships. CyrusOne's National IX platform provides robust connectivity options to drive revenue, reduce expenses, and improve service quality for enterprises, content, and telecommunications companies. CyrusOne is committed to full transparency in communication, management, and service delivery throughout its more than 30 data centers worldwide.