CBRE Group, Inc. agreed on October 20, 2026, to acquire London-based data center integrator Onnec Group Limited for up to $1 billion. The transaction merges the commercial real estate services provider with an infrastructure specialist focused on hyperscale cloud and artificial intelligence deployments. CBRE will pay an initial £460 million in cash, followed by a multi-year earnout of up to £300 million tied to financial performance thresholds, according to the company’s SEC Form 8-K filed on October 20.
The purchase demonstrates how property managers are migrating inside the data center shell to capture higher-margin technical services. Real estate firms historically stopped at facility management and power provision, leaving specialized networking to outside vendors. The deployment of dense computing architectures requires specialized cabling, fiber and rack integration. By absorbing Onnec, CBRE takes control of the technical layer directly rather than relying on third-party contractors for interior fit-outs.
Onnec generated £21.9 million in adjusted earnings before interest, taxes, depreciation and amortization on £193 million in revenue during 2025, according to IT Channel Oxygen on October 20. The target’s trailing valuation multiple approaches 34.7 times earnings if all earnout conditions are met. This multiple poses a question regarding whether the anticipated hyperscale capacity build-out in Europe and the Asia-Pacific region can deliver the projected cash flows.
Deal terms at a glance
| Metric | Detail |
|---|---|
| Buyer | CBRE Group, Inc. (NYSE: CBRE) |
| Target | Onnec Group Limited |
| Upfront consideration | £460 million |
| Contingent consideration | Up to £300 million |
| Implied enterprise value | Up to £760 million |
| Financing | Cash on hand |
| Conditions | Customary regulatory approvals |
| Expected timetable | Closing around the end of calendar 2026 |
Advisers
J.P. Morgan Securities, LLC advised CBRE Group, Inc. on financial matters, according to a CBRE press release published on October 20. Simpson Thacher & Bartlett LLP provided legal counsel to the buyer.
Goldman Sachs International acted as the financial adviser to Onnec Group Limited. Freshfields LLP served as legal counsel to the target company, according to StreetInsider on October 20.
How the deal came about
CBRE expanded its data center infrastructure business in 2024 through the acquisition of Direct Line Global, a United States-based technology services provider. The integration of Direct Line Global gave CBRE a platform to manage physical network infrastructure for major technology companies in North America. The company required a similar platform to service the United Kingdom, Continental Europe and the Asia-Pacific region.
Onnec Group Limited operates as a network connectivity integrator across those international markets. Founded in 1986, Onnec transitioned from traditional telecommunications installations into data center infrastructure services. The firm installs cabling, fiber optics and equipment racks for hyperscale cloud providers. CBRE approached Onnec to complete its geographic coverage and create a global technical services division within its Critical Infrastructure Services line, according to The Wall Street Journal on October 20.
Valuation and comparables
CBRE based its valuation on projected future earnings rather than historical performance. Onnec posted £21.9 million in adjusted EBITDA during calendar 2025, according to IT Channel Oxygen on October 20. The £460 million initial consideration prices the business at 21.0 times its 2025 adjusted EBITDA. The maximum £760 million payout prices the business at 34.7 times its 2025 adjusted EBITDA.
CBRE projects Onnec will generate £370 million in revenue and more than £50 million in core EBITDA in 2027, according to the SEC Form 8-K. The forward enterprise value to EBITDA multiple falls below 9.2 times based on the initial consideration. The multiple falls below 15.2 times based on the maximum potential payout. CBRE stated in its press release that the transaction will immediately increase core earnings per share.
Financing and structure
CBRE will fund the £460 million upfront consideration using cash. J.P. Morgan Securities arranged transaction financing, according to Commercial Observer on October 20. Specific debt-facility terms are not disclosed.
The £300 million earnout structure ties future payouts to specified growth thresholds over a multi-year period. CBRE did not disclose the exact duration of the earnout period or the specific revenue targets required to unlock the full contingent consideration.
Risks, conditions and key dates
- October 20, 2026: CBRE and Onnec sign the definitive agreement, as reported in the SEC Form 8-K.
- December 31, 2026: Approximate target closing date, subject to closing conditions, according to The Wall Street Journal on October 20.
The transaction requires customary regulatory approvals. CBRE and Onnec did not disclose which specific antitrust jurisdictions must approve the deal before closing. No competing bids or rival offers emerged during the process, according to the SEC Form 8-K.
Where reports disagree
Financial news outlets published varying United States dollar conversions for the British pound consideration. CBRE reported the £460 million upfront payment equals approximately $610 million, a figure matched by Reuters on October 20. The Motley Fool cited the upfront payment as $613 million on the same day.
The total transaction value generated similar discrepancies. The Wall Street Journal and Reuters described the total potential value as up to $1 billion. Data Centre Magazine and The Tech Capital cited the maximum value as up to $1.01 billion on October 20 and October 21. Axios reported the maximum consideration as upwards of $1.1 billion on October 20.
Projected 2027 revenue figures also varied by publication. CBRE cited expected 2027 revenue of $498 million in its October 20 press release. The Motley Fool reported the projected revenue as $493 million.
Sources
Company and regulator filings
Press and analysis
- Commercial Observer, CBRE Acquisition Data Center Onnec Group
- Investing.com, CBRE to Acquire Onnec Group for Up to 1 Billion in Cash
- Motley Fool, Why CBRE Stock Triumphed on Tuesday
- StreetInsider, CBRE to Acquire Onnec Group for Up to £760M
- IPE Real Assets, CBRE Buys Data Centre Infrastructure Services Firm Onnec for Up to 760m
- Data Centre Magazine, Why is CBRE Acquiring Onnec in a Deal Worth US 1bn
- The Tech Capital, CBRE Onnec 1 Billion Data Centre Infrastructure Acquisition
- IT Channel Oxygen, Hyperscaler Focused Integrator Onnec Grabbed for Up to 1bn
Facts as of 21 October 2026.
