Data Center companies CyrusOne and CoreSite acquired in deals summing $25Bn

CyrusOne and CoreSite, announced deals valued at $15 billion and $10 billion, respectively.

KKR, a well-known private equity firm, and Global Infrastructure Partners, that invests in infrastructure companies like data centers, both saw fit to pay CyrusOne a 25% premium on its closing stock price of $72.57 per share back on September 27 under the terms of the deal. The deal has already been approved by the CyrusOne board and, pending approval of regulators, is expected to close sometime in the second quarter of next year.

Reports say that they are the third and fourth largest U.S. data center operations, measured by colocation (the number of firms using their services) and revenue.

Meanwhile, CoreSite matched the largest deal when it announced it was being purchased by American Tower, a real estate investment trust (REIT), for $10 billion. It boasts 25 data centers, 21 cloud on-ramps and over 32,000 interconnections in eight major U.S. markets, generating $655 million in annual revenue.

Both companies have a strong presence in the U.S. market and continued growth at these operations is driving the need for increased investment.