CBRE Group, Inc. has entered into a definitive agreement to acquire UK-based Onnec Group Limited. The initial purchase price is 460 million British pounds (around 610 million US dollars) in cash. In addition, a multi-year performance-based earn-out of up to 300 million pounds (approximately 400 million US dollars) linked to the achievement of defined growth targets has been agreed.
Founded in 1986, Onnec is headquartered in London and employs around 800 staff. The company specialises in the design, implementation and maintenance of network, fibre-optic and data centre infrastructure. Its client base includes leading global technology corporations and hyperscalers across the UK, continental Europe and the Asia-Pacific region. Onnec's regional presence complements CBRE's existing data centre services in the United States.
Integration into the infrastructure division and earnings expectations
Following the closing of the transaction, Onnec will operate as part of CBRE's Critical Infrastructure Services business line. For the 2027 financial year, Onnec is projected to generate revenue of around 370 million pounds (498 million US dollars) and adjusted core EBITDA of over 50 million pounds (67 million US dollars). The acquisition is expected to be immediately accretive to CBRE's adjusted earnings per share.
CBRE projects total revenue of nearly 4.5 billion US dollars in 2027 for the Critical Infrastructure Services division including Onnec. For other service areas of the group, particularly project management and consulting, revenue of just under 2.5 billion US dollars is anticipated in the infrastructure segment. This results in a projected total revenue for infrastructure services of almost 7.0 billion US dollars for 2027. Any proceeds from occasional land sales for data centres within the development business are not included.
Strategic direction and transaction details
Vikram Kohli, Chief Operating Officer of CBRE, explained that the company is pursuing a clear strategy to build a global infrastructure services business that complements traditional real estate services. The acquisition aligns with the goal of strengthening resilient areas supported by long-term market trends. Barry Horgan, Chairman of Onnec, stated that CBRE's platform and expertise provide the framework to expand capabilities, deliver even greater value to clients and open up new opportunities for employees.
Closing of the transaction is subject to customary regulatory approvals and is expected towards the end of this year. J.P. Morgan Securities, LLC acted as financial adviser to CBRE, while Simpson, Thacher & Bartlett LLP served as legal counsel. For Onnec, Goldman Sachs International acted as financial adviser and Freshfields LLP as legal counsel.
