CBRE Buys Data Center Services Firm Onnec for £460m

CBRE will pay £460 million (about $610m) in cash for Onnec Group Limited, the London-based data center infrastructure services provider, with a multi-year earnout of up to £300m ($400m) on top if Onnec hits certain growth targets.

The NYSE-listed real estate services giant announced the definitive agreement this week and expects the deal to close by the end of the year. Onnec, founded in 1986, designs, deploys, and maintains network, fiber, and data center infrastructure for technology companies across Europe and Asia Pacific. After closing, it will operate inside CBRE's Critical Infrastructure Services line of business.

What does the deal do to the numbers?

CBRE expects Onnec to generate roughly £370m ($498m) in revenue in 2027, with core EBITDA above £50m ($67m). That means the upfront price of £460m sits at less than seven times the 2027 EBITDA target — before any earnout payments — and the potential total consideration of up to £760m ($1.01bn) works out to roughly fifteen times that figure if all growth targets are met.

For context, the maximum earnout alone (£300m) is close to what Onnec is projected to earn in EBITDA across six years at current margins. The structure puts real money on the seller's side tied to delivery, which practitioners will read as CBRE hedging its valuation against execution risk.

Why is CBRE buying?

The move fits a stated strategy of building a services arm that goes beyond buildings. "CBRE is pursuing an explicit strategy to build a global infrastructure services business to complement our real estate services business," said Vikram Kohli, CBRE's COO. "We've long believed Onnec is an excellent fit in this strategy."

Kohli added: "The acquisition is also consistent with our ongoing effort to build resilient businesses that benefit from secular tailwinds."

That's a signal to competitors and clients alike: CBRE wants a piece of the data center build-out cycle, not just the leases around it. Fiber and network deployment skills are scarce, and buying a firm with 40 years of operating history gets CBRE those capabilities immediately rather than organically.

What happens to Onnec's customers and staff?

Onnec's chairman framed the deal as a scale play rather than an exit. "From day one, our focus has been on delivering exceptional connectivity solutions for our customers," Barry Horgan said. "As part of CBRE, we gain the platform and expertise to broaden our capabilities, creating even greater value for our clients, and provide new opportunities for our employees, while staying true to the customer-focused approach that has driven our success."

For Onnec's technology clients across Europe and Asia Pacific, ownership by a NYSE-listed giant means deeper balance-sheet backing — but also a new layer of corporate structure over a firm that has been independent since the 1980s.

Who advised on the deal?

The advisory lineup signals the transaction's weight:

• J.P. Morgan Securities, LLC — financial advisor to CBRE
• Simpson, Thacher & Bartlett LLP — legal advisor to CBRE
• Goldman Sachs International — financial advisor to Onnec
• Freshfields LLP — legal advisor to Onnec

With closing expected before year-end, integration planning for the Critical Infrastructure Services line is the next thing to watch.