Gary Wojtaszek’s departure comes after data center services firm reports disappointing quarterly numbers
The president and CEO of CyrusOne is leaving the data center services company, refueling speculation that the Dallas-based firm may be sold.
The Lowdown: The resignation of Gary Wojtaszek and the appointment of CyrusOne veteran Tesh Durvasula to fill the position on an interim basis this week was announced the day after the company announced its quarterly earnings, which included a loss of $52.1 million and a 15% revenue jump to $253.9 million.
The Details: Wojtaszek, whose resignation was by mutual agreement with the board of directors, will stay on to help with the transition as the board starts searching for a permanent successor. Durvasula, who has been with CyrusOne since 2012, first as chief commercial officer and most recently as president of its European operations, will be among the candidates considered for the permanent post.
Last fall, CyrusOne began working with Morgan Stanley to explore its options, which include being sold. There has been reported interest in the company from the likes of rival Digital Realty Trust, as well as investment firms EQT Partners and Digital Colony Partners, though no offer has materialized.
The company has a reported market cap of $7.4 billion, operating 48 data centers in North and South America, Asia, and Europe for about 1,000 customers.
The Impact: The rising trends of cloud computing services and outsourcing have driven a rise in the number of data center-oriented deals over the past five years as enterprises turn to service providers to run their infrastructures, according to Synergy Research Group, which has tracked 348 such deals during that time totaling $75 billion. Digital Realty and Equinix have been the most aggressive buyers, though CyrusOne also was named – along with others like Iron Mountain, NTT, and Digital Bridge/DataBank – by Synergy as “serial acquirers.”
In 2019, there were more than 100 such deals, up 6% from the year before and more than double the number of closed deals in 2016.
The Buzz: “Under Gary’s leadership, the company has grown to nearly $1 billion in revenue, expanded into Europe, Asia, and Latin America, achieved an investment-grade credit rating, and had a stock price that outperformed its public data center peers, as well as both the RMZ and S&P 500 indexes, since the company’s IPO in January 2013,” said Alex Shumate, chairman of the CyrusOne board. “Tesh is an industry veteran with over 20 years of experience in fiber optics, interconnection, and data centers. During his more than seven years at CyrusOne, including serving as chief commercial officer and his most recent role as president of Europe, Tesh has demonstrated that he is a strong and dynamic leader who is customer-focused and knows our business well. He has worked closely with our teams across the company to execute our strategy and deliver results.”
“I know that I speak for everyone at CyrusOne in thanking Gary for his strong leadership and vision. Over the years, Gary has helped create a strong company culture at CyrusOne focused on excellent customer service and delivering shareholder value, which will remain unchanged,” Durvasula said.
“It has been a tremendous journey and privilege to serve as the CEO and a board member of CyrusOne since its IPO and spin-off from Cincinnati Bell,” Wojtaszek said. “From helping take the company public to expanding overseas and emerging as one of the top data center companies in the world, I am incredibly proud of what we have accomplished and the culture we have created.”