CBRE Enhances, Differentiates Data Center Capabilities with Acquisition of Direct Line Global
June 18 2024 - 9:00AM
Business Wire
CBRE Group, Inc. (NYSE:CBRE) today announced the acquisition of
Direct Line Global, a premier provider of mission-critical data
center infrastructure for the world’s leading technology companies,
from Guardian Capital, a private equity firm. The acquisition is
expected to be immediately accretive to CBRE’s core
earnings-per-share.
Founded in 1997, Direct Line Global provides design,
installation, maintenance and management solutions for data center
owners and operators, primarily in the U.S. It is focused on
serving the world’s largest global technology companies across the
hyperscale market, which is growing rapidly, co-location and
enterprise segments.
The global market for data center support services is estimated
to be approximately $30 billion and is expected to grow at 16% per
year through 2028.
“This acquisition fits squarely with our strategy of enhancing
our capabilities in asset classes that benefit from secular
tailwinds – in this case, the increasing digitization of the global
economy,” said Vikram Kohli, chief operating officer of CBRE.
“Direct Line Global perfectly complements our existing data center
management capabilities and provides us with best-in-class
technical capabilities that differentiate our service
offering.”
Direct Line Global provides technical services, such as server
support infrastructure, while CBRE currently focuses on facilities
management services. Combining the two gives CBRE the ability to
deliver integrated data center solutions that no other service
provider can match.
“We see huge benefits from operating as part of CBRE,” said Bill
Nelligan, chief executive officer of Direct Line Global. “Our
business has strong momentum, driven by the economy’s voracious
appetite for data and artificial intelligence’s explosive growth.
We are particularly energized about the opportunities that CBRE’s
preeminent global platform will afford us for overseas growth.”
Direct Line Global has grown significantly since Mr. Nelligan
became CEO in 2021. The company, based in Fremont, CA, has more
than 1,000 employees including significant operations in northern
Virginia with additional operations in Hong Kong, the Philippines,
Singapore and South Korea.
Direct Line Global will operate as part of CBRE’s Data Centers
Solutions business within the Global Workplace Solutions business
segment.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500
company headquartered in Dallas, is the world’s largest commercial
real estate services and investment firm (based on 2023 revenue).
The company has more than 130,000 employees (including Turner &
Townsend employees) serving clients in more than 100 countries.
CBRE serves a diverse range of clients with an integrated suite of
services, including facilities, transaction and project management;
property management; investment management; appraisal and
valuation; property leasing; strategic consulting; property sales;
mortgage services and development services. Please visit our
website at www.cbre.com. We routinely post important
information on our website, including corporate and investor
presentations and financial information. We intend to use our
website as a means of disclosing material, non-public information
and for complying with our disclosure obligations under Regulation
FD. Such disclosures will be included in the Investor Relations
section of our website at https://ir.cbre.com. Accordingly,
investors should monitor such portion of our website, in addition
to following our press releases, Securities and Exchange Commission
filings and public conference calls and webcasts.
About Direct Line Global
Direct Line Global, based in Fremont, CA, is a leading
technology infrastructure services provider enabling
mission-critical data center infrastructure for the world’s
technology leaders. Direct Line Global’s 1000+ skilled technicians
deliver over 1000 projects annually across data center markets in
the US and Asia Pacific. The company has proven success in the
deployment of next-generation infrastructure technologies across
the data center lifecycle – from design & planning, install
& build through Day 2 maintenance, technology upgrades &
retrofits, including delivering the latest wave of AI/ML
platforms.
Forward-Looking Statements
Certain of the statements in this release regarding CBRE’s
acquisition of Direct Line Global that do not concern purely
historical data are forward-looking statements within the meaning
of the “safe harbor” provisions of the U.S. Private Securities
Litigation Reform Act of 1995. Forward-looking statements are made
based on our management’s expectations and beliefs concerning
future events affecting us and are subject to uncertainties and
factors relating to our operations and business environment, all of
which are difficult to predict and many of which are beyond our
control. Accordingly, actual performance, results and events may
vary materially from those indicated in forward-looking statements,
and you should not rely on forward-looking statements as
predictions of future performance, results or events. Numerous
factors could cause actual future performance, results and events
to differ materially from those indicated in forward-looking
statements, including, but not limited to, the further development
of the market for data center services and the ability to operate
Direct Line Global in conjunction with CBRE’s existing data center
business, as well as other risks and uncertainties discussed in our
filings with the U.S. Securities and Exchange Commission (SEC). Any
forward-looking statements speak only as of the date of this
release. We assume no obligation to update forward-looking
statements to reflect actual results, changes in assumptions or
changes in other factors affecting forward-looking information,
except to the extent required by applicable securities laws. If we
do update one or more forward-looking statements, no inference
should be drawn that we will make additional updates with respect
to those or other forward-looking statements. For additional
information concerning factors that may cause actual results to
differ from those anticipated in the forward-looking statements and
other risks and uncertainties to our business in general, please
refer to our SEC filings, including our Form 10-K for the fiscal
year ended December 31, 2023, and our Form 10-Q for the period
ended March 31, 2024. Such filings are available publicly and may
be obtained from our website at www.cbre.com or upon request from
the CBRE Investor Relations Department at
investorrelations@cbre.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240618907734/en/
Steve Iaco CBRE-Media 212.984.6535 Steven.Iaco@cbre.com
Chandni Luthra CBRE-Investors 212.984.8113
Chandni.luthra@cbre.com
CBRE (NYSE:CBRE)
Historical Stock Chart
From May 2024 to Jun 2024
CBRE (NYSE:CBRE)
Historical Stock Chart
From Jun 2023 to Jun 2024