Acquisitions

On July 1, 2015, CyrusOne LP acquired 100% of Cervalis, a privately-held owner and operator of data centers for $398.4 million, excluding transaction-related expenses, in an all cash transaction. Cervalis has four data center facilities and two work recovery facilities serving the New York metropolitan area. CyrusOne LP financed the acquisition with proceeds of CyrusOne Inc's June 2015 common stock offering and CyrusOne LP and CyrusOne Finance Corp.'s July 2015 6.375% senior notes offering as well as drawing under CyrusOne Inc's senior unsecured credit facility. The acquisition of Cervalis enhances the geographic diversification of CyrusOne, provides access to a high quality enterprise customer base and strengthens our product portfolio. The goodwill recorded for this acquisition relates to the incremental value that Cervalis brings to the existing CyrusOne operations. The customer relationships intangible is expected to be amortized over fifteen years. For the year ended December 31, 2015, transaction and integration costs related to the Cervalis Acquisition were $12.9 million.

The consolidated and combined financial statements include the operating results of Cervalis from the date of acquisition. The following table summarizes the estimated fair values of all assets acquired and liabilities assumed at the date of acquisition:



Cash	$	1.1
Rent and other receivables	10.5
Restricted cash	8.8
Net investment in real estate	197.8
Goodwill	177.2
Customer relationships	117.4
Trade name	2.3
Other long-term assets	7.3
Total assets acquired	522.4

Current liabilities	18.3
Capital lease obligations	1.7
Long-term debt	1.5
Other arrangements	101.4
Total liabilities	122.9
Net assets acquired attributable to CyrusOne Inc.	399.5
Cash acquired	(1.1		)
Net cash paid at acquisition	398.4

The acquisition of Cervalis in July 2015 resulted in an increase in revenue of $37.7 million for year ended December 31, 2015.

The unaudited pro forma combined historical results of CyrusOne, as if Cervalis had been acquired and the financing transactions had been consummated as of January 1, 2014 are:



IN MILLIONS
For the year ended December 31,	2015		2014
Revenue	438.6		399.0
Net loss	(10.9	)	(17.2	)
Loss per share - basic and diluted	(0.16	)	(0.35	)

These amounts have been calculated after applying CyrusOne's policies and adjusting the results to reflect changes to Depreciation and amortization to property and equipment, amongst others, and amortizing intangible assets had been recorded as of January 1, 2014. These pro forma combined results of operation are presented for informative purposes only and they do not purport to be indicative of the results of operation that actually would have resulted had the acquisition occurred on the date indicated, or that may result in the future.