CBRE Acquires Data Center Services Firm Onnec
The deal adds a London data-center specialist as CBRE targets a global infrastructure services business and forecasts more than £50 million in Onnec EBITDA.
- On Tuesday, CBRE Group agreed to acquire London-based Onnec Group for $610 million upfront in cash, expanding its data-center infrastructure services across Europe and Asia Pacific.
- CBRE Chief Operating Officer Vikram Kohli stated the firm is 'pursuing an explicit strategy to build a global infrastructure services business,' with Onnec's approximately 800 employees specializing in network, fiber, and data center infrastructure.
- The deal includes contingent payments of up to $400 million tied to growth milestones, while Onnec is anticipated to produce 370 million pounds in revenue and more than $67 million in core EBITDA next year.
- Investors signaled approval by driving CBRE stock up nearly 3% on Tuesday, with Onnec set to operate within CBRE's Critical Infrastructure Services line upon the expected year-end closing.
- Complementing CBRE's real estate services, COO Kohli added, 'We've long believed Onnec is an excellent fit in this strategy,' as the combined organization projects nearly $7 billion in infrastructure-services revenue by 2027.
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CBRE Group is acquiring British data center infrastructure services company Onnec for about $610 million. The transaction, which is expected to close by the end of the year, will strengthen the real estate consulting company's presence in the technology sector in Europe and Asia, datacenterdynamics.com reported.
Why CBRE Stock Triumphed on Tuesday
Key PointsThe real estate specialist has struck a deal to acquire data center infrastructure company Onnec Group.This is an all-cash transaction worth around $613 million.Motley Fool Issues Rare "Total Conviction" Buy Alert › CBRE Group (NYSE:CBRE) is bulking up through an acquisition, and investors were there for it on Tuesday. They signaled approval by snapping up shares of the real estate company's equity, and CBRE's stock closed that day's t…
CBRE is acquiring the British Onnec Group for $610 million. The final value of the transaction could exceed $1 billion. The global real estate giant is expanding its operations in the data center infrastructure sector.
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