KKR and BlackRock’s Global Infrastructure Partners are considering a public listing of CyrusOne that could give the investment firms an opportunity to cash in on their data-centre investment while helping the company reduce debt.
The owners held talks with investment banks, including Goldman Sachs and Morgan Stanley, last week as they began exploring a possible initial public offering as early as 2027, according to people familiar with the matter.
The offering could raise about $5 billion, one of the people said. However, CyrusOne has not decided how much to raise or what valuation to seek, and the plans could still change.
The talks come four years after KKR and GIP acquired CyrusOne in a deal valued at about $15 billion, including debt, and took the company private.
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A listing would give the firms a route to partially realise their investment while providing CyrusOne with capital to help repay borrowings linked to its expansion.
CyrusOne, which operates more than 60 data-centre campuses in the United States, Europe and Japan, is benefiting from strong demand for computing capacity.
The growth of cloud services and artificial-intelligence applications has encouraged investors and infrastructure funds to increase spending on data centres, power and related facilities.
Other large companies in the sector are also preparing to tap public markets. Switch has selected banks for a potential offering that could value it at close to $80 billion, including debt. SoftBank-backed SB Energy is preparing for a U.S. listing that could value it at more than $50 billion, while Brookfield-backed Csquare raised more than $1 billion in its IPO last month.
BlackRock, KKR, Goldman Sachs and Morgan Stanley declined to comment. CyrusOne also had no comment.
The Information previously reported that the company was preparing to interview banks.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
