The value of M&A in the data centre sector reached $12.3 billion (£8 billion) during 2011, new research finds.

The value of M&A in the data centre sector reached $12.3 billion (£8 billion) during 2011, new research finds.
 


Statistics from consultancy firm BroadGroup show that the most active participant in the market is the USA, followed by the UK and Australia.
 


In a review of all publicly available data, 45 per cent of the surveyed deals were for below $100 million, with an additional 25 per cent valued at up to $250 million.
 

‘We believe that when we add these figures to the additional investment that has been made in extending, upgrading and constructing data centres the financial scale of the sector has shifted substantially in 2011,’ says a BroadGroup spokesman.
 


‘These figures still discount the investments and acquisitions occurring in software, technology, and energy innovation to address the data centre sector. The overall market is generating a significant level of cash and stakeholder value and it will be interesting to watch developments in the coming year.’
 


According to the research 2011 was ‘dominated’ by mega-deals in the sector, including the acquisition of hosting and domain provider Go Daddy for $2 billion by KKR, Silver Lake and Technology Crossover Ventures.
 


The survey also highlights the merger between CenturyLink and Savvis, valued at $2.5 billion, which has created 48 data centres in North America, Europe and Asia.
 


Funding rounds and IPOs accounted for a total of $6 billion in the sector for the review period. Additionally, almost half of all transactions were in the $100 million to $700 million range, with the same amount also using debt financing instruments.