Yahoo Finance Jones Lang (JLL) to Buy SKAE to Boost Data Center Expertise
Jones Lang LaSalle JLL — popularly known as JLL — recently announced that it has entered into an agreement to acquire a New York-based provider of data center technical and project management services, SKAE Power Solutions (”SKAE”). The deal is expected to close soon, subject to customary closing conditions.
This move will allow Jones Lang to offer solutions throughout the entire data center lifecycle and add significant technical depth to its existing offerings. SKAE’s expertise will enhance JLL's ability to support clients with crucial data center site selection, design, testing and commissioning, upgrades and operations management.
Per Neil Murray, CEO of Work Dynamics, Jones Lang, "With the continued growth of the global data center market, we're seeing increased opportunity to deliver the specialized expertise required to manage and maintain these assets. This acquisition immediately enhances our ability to expertly support our clients' data center solutions now, and into the future."
The acquisition seems a strategic fit, with JLL's recent Global Data Center Outlook highlighting how AI and machine learning are driving a shift in data center design, site selection and investment approach.
There will likely be a significant surge in data generation by both consumers and businesses over the next five years. This surge is expected to be twice the amount of data created in the past decade. As a result, the storage capacity of data centers is projected to increase from 10.1 zettabytes (ZB) in 2023 to an estimated 21 ZB by 2027.
Following the deal’s completion, SKAE's 75 employees will become part of JLL Work Dynamics. The acquisition will form JLL’s Technical Services division within the Data Center vertical and will continue to operate as SKAE, a JLL company.
Over the past years, Jones Lang has undertaken several strategic acquisitions as part of its global growth strategy, thereby expanding its capabilities in several service offerings. The company continues to look for opportunities to invest in its business, both organically and through mergers and acquisitions.
Jones Lang’s superior client services and strategic investment in technology and innovation are expected to help grow market share and win relationships. In fact, strategic investments made on the technology front helped it to well navigate the challenging times.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have rallied 10% compared with the industry’s upside of 3.4%.
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