Data centre operator CyrusOne eying a possible sale

US data centre operator CyrusOne Inc is exploring strategic alternatives that include a potential sale of the company, people familiar with the matter said.

According to a report by Reuters, the real estate investment trust is working with investment bank Morgan Stanley to review its options after coming under renewed pressure from some investors to address its sluggish financial performance and heavy management turnover, the sources said.

There is no certainty that CyrusOne’s current deliberations will result in any deal, the sources said, requesting anonymity because the matter is confidential.

A spokesperson for CyrusOne did not immediately respond to a request for comment and a Morgan Stanley spokesperson declined to comment. Based in Dallas, CyrusOne operates more than 50 data centres globally, seeking to capitalize on the cloud computing trend of companies outsourcing some of their data management.

CyrusOne does not operate any major internet exchanges and with growth forecast to slow, some data centres like CyrusOne’s could become more commoditised, according to a note from Morningstar.

Venkatesh Ganesh

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