Cyxtera Technologies was founded by merging a global data center provider with a clutch of cybersecurity software companies on the premise that they would be stronger together. Now, they believed that they would be stronger apart. In these two years, Cyxtera forced its AppGate cybersecurity software that is one of the most highly commended tools on the market. AppGate cybersecurity software is being used in its data centers which serve high-security government agencies and sensitive corporations.
That’s not any reason for this breakup
According to a report by the credit rating agency Moody’s, Cyxtera’s plans to build investment capital were set back by heavy debts it struggled to pay off. Its data center rivals had been raising hundreds of millions of dollars in investment capital and competing to build data centers in growth markets such as Europe. When Cyxtera is aiming to raise money by going to the markets, Moody’s downgraded its credit rating. The company is being criticized for its data center construction amounted to little more than capacity expansion at existing sites.
Freshly appointed CEO Nelson Fonseca, when asked if the reason for the breakup has been the weakness in the colocation business hampering the security business, had replied:
“That has nothing to do with it. That’s not any reason why we spun out the cybersecurity business. The management team had been under no pressure to break the company up.” he added. I wouldn’t say (the breakup) was necessary. The market conditions were just right.”
“All that had changed since Cyxtera’s launch was the prospects for each side of the business, which had become so unexpectedly great that the firm just had to be split to make the most of them”, he added.
Source: Cyxtera Official Press Release
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