CBRE to Buy Onnec for $610M, Expanding Data Center Services

CBRE Group has agreed to acquire London-based Onnec Group for an initial £460 million, approximately $610 million, in cash, expanding its data center infrastructure capabilities across Europe and Asia Pacific. The agreement includes a multiyear earnout of up to £300 million, approximately $400 million, contingent on Onnec meeting growth thresholds.

Founded in 1986, Onnec designs, deploys and maintains network, fiber and data center infrastructure. Its approximately 800 employees serve large technology companies across the United Kingdom, continental Europe and Asia Pacific.

Onnec will join CBRE’s Critical Infrastructure Services business, which the company expects to generate nearly $4.5 billion in revenue in 2027, including the acquisition.

Other CBRE businesses, principally Project Management and Advisory Services, are projected to contribute almost $2.5 billion in infrastructure services revenue. Combined, those operations would generate nearly $7 billion next year, excluding periodic data center land sales.

“CBRE is pursuing an explicit strategy to build a global infrastructure services business to complement our real estate services business,” Chief Operating Officer Vikram Kohli said.

CBRE expects Onnec to generate approximately £370 million, or $498 million, in 2027 revenue and more than £50 million, or $67 million, in core EBITDA. The acquisition is expected to immediately increase CBRE’s core earnings per share.

The transaction is expected to be completed around the end of the year.

J.P. Morgan Securities, LLC is acting as financial advisor and Simpson, Thacher & Bartlett LLP as legal advisor to CBRE. Goldman Sachs International is acting as financial advisor and Freshfields LLP as legal advisor to Onnec.