CBRE Group, Inc. has signed a definitive agreement to acquire London-based Onnec Group Limited. Founded in 1986, the company is regarded as a leading provider of data centre infrastructure services, serving hyperscalers and major technology corporations across the UK, continental Europe and the Asia-Pacific region. The initial purchase price is 460 million pounds in cash, representing approximately 610 million US dollars. A multi-year earn-out of up to 300 million pounds (around 400 million US dollars) has also been agreed, contingent upon achieving defined growth thresholds.
Growth projections and strategic integration
Onnec will in future operate within CBRE's Critical Infrastructure Services business line. For 2027, Onnec is projected to achieve revenue of around 370 million pounds (498 million US dollars) and adjusted core EBITDA of more than 50 million pounds (67 million US dollars). The acquisition is expected to be immediately accretive to CBRE's adjusted earnings per share. The entire Critical Infrastructure Services division, including Onnec's contribution, is expected to generate revenue of nearly 4.5 billion US dollars by 2027.
Together with the other service lines of project management and advisory, which are estimated to turn over almost 2.5 billion US dollars in the infrastructure segment in 2027, CBRE is targeting a total volume of nearly 7.0 billion US dollars in this field of activity. Potential proceeds from occasional data centre land sales within the development business are not included in this projection.
With its approximately 800 employees, Onnec covers the planning, implementation and ongoing maintenance of network, fibre-optic and data centre infrastructure. Geographically, its market presence in Europe and the Asia-Pacific region complements CBRE's already established US business in this segment.
Management commentary and transaction process
Vikram Kohli, Chief Operating Officer at CBRE, emphasised that building a global infrastructure services business purposefully expands the existing real estate operations and that Onnec aligns precisely with this direction. He stated that the acquisition supports the objective of creating resilient units supported by long-term secular market trends. Barry Horgan, Chairman of Onnec, highlighted that joining CBRE's global network provides the company with the necessary platform to expand its capabilities and maintain its client-focused approach to global connectivity solutions.
- —CBRE was advised financially by J.P. Morgan Securities, LLC and legally by Simpson, Thacher & Bartlett LLP.
- —Onnec engaged Goldman Sachs International as financial adviser and Freshfields LLP as legal adviser.
- —Closing of the transaction remains subject to customary regulatory approvals.
The parties anticipate formal completion of the transaction towards the end of this year.
