CINCINNATI – Cincinnati Bell Inc. has completed its acquisition of data center operator CyrusOne from private equity investment firm ABRY Partners in a $525 million cash transaction. CyrusOne is the largest data center colocation company in Texas. 

The acquisition increases the scale and scope of Cincinnati Bell's data center operations by adding seven data centers in Houston, Dallas, and Austin with a total of 174,000 square feet of data center capacity. As a result, Cincinnati Bell's Technology Solutions segment will have a combined total of 620,000 square feet of data center capacity in 17 best-in-class facilities, and, based on annualized first quarter 2010 results, combined operating income of approximately $56 million and adjusted earnings before interest, income taxes, depreciation and amortization (Adjusted EBITDA1) of approximately $93 million.

"The acquisition of CyrusOne is an important step in our long-term strategy of becoming the preferred global data center colocation provider to Fortune 1000 companies," said Jack Cassidy, president and CEO of Cincinnati Bell.

Dave Ferdman, founder and CEO of CyrusOne, added, "Our customers have been asking us to expand outside of Texas for years, and until now we have been reluctant to do so as we didn't have the size and scale that we now have with Cincinnati Bell. We are looking forward to accelerating the growth of our business and believe this combination will offer our customers the opportunity to grow with us internationally as we create a global data center business."

Cincinnati Bell announced its agreement to acquire CyrusOne on May 12, 2010. In connection with this transaction, Cincinnati Bell entered into new long-term senior credit facilities, comprised of a $210 million secured revolving credit facility and a $760 million secured term loan credit facility.