CBRE to acquire Onnec in $610 million cash deal

CBRE Group, Inc. has signed a definitive agreement to purchase Onnec Group Limited, a London-based provider of data center infrastructure services. The initial cash price is £460 million, or approximately $610 million, with an additional multi-year earnout of up to £300 million, or about $400 million, if Onnec meets certain growth thresholds. The transaction requires customary regulatory approvals and is expected to close around the end of the year.

The acquisition expands CBRE's critical infrastructure capabilities in Europe and Asia Pacific. Onnec, founded in 1986, specializes in the design, deployment, and maintenance of network, fiber, and data center infrastructure. With approximately 800 employees, the company serves major technology clients across the United Kingdom, Continental Europe, and Asia Pacific. CBRE expects Onnec to generate approximately £370 million, or $498 million, in revenue and more than £50 million, or $67 million, of core EBITDA in 2027. Management stated the acquisition will be immediately accretive to CBRE's core earnings per share.

Vikram Kohli, Chief Operating Officer at CBRE, described the move as part of an explicit strategy to build a global infrastructure services business that complements the firm's real estate operations. Kohli noted that the acquisition aligns with efforts to build resilient businesses benefiting from secular tailwinds. Onnec will operate within CBRE's Critical Infrastructure Services line of business. CBRE projects this segment will generate nearly $4.5 billion in total revenue in 2027, including contributions from Onnec.

The acquisition integrates with other infrastructure services provided by CBRE, including Project Management and Advisory Services. These remaining services are expected to generate almost $2.5 billion in infrastructure services revenue in 2027. Combined, CBRE estimates total infrastructure services revenue for 2027 will be nearly $7.0 billion. This figure excludes revenue from periodic data center land sales within the development business.

Barry Horgan, Chairman of Onnec, stated that joining CBRE provides the platform and expertise needed to broaden capabilities and create greater value for clients. He added that the move offers new opportunities for employees while maintaining the customer-focused approach that has driven Onnec's success. Onnec's geographic presence aligns with data center infrastructure services CBRE already delivers in the United States.

J.P. Morgan Securities, LLC and Goldman Sachs International are serving as financial advisors for CBRE and Onnec, respectively. Simpson Thacher & Bartlett LLP and Freshfields LLP are providing legal counsel to the two companies. CBRE Group, Inc., headquartered in Dallas, is a Fortune 500 company with more than 155,000 employees serving clients in over 100 countries.