CHICAGO - Global commercial real estate services firm JLL (NYSE: JLL) announced today the acquisition of SKAE Power Solutions, a provider of technical and project management services for data centers based in New York. The acquisition is poised to bolster JLL's existing services by adding comprehensive solutions throughout the entire data center lifecycle. The transaction is set to conclude shortly, pending standard closing conditions.
Neil Murray, CEO of Work Dynamics at JLL, expressed the company's anticipation for the integration of the SKAE team, highlighting the strategic move to enhance technical service delivery for critical data center assets. This move comes at a time when JLL's Global Data Center Outlook has identified a shift in data center design and investment, driven by advancements in AI and machine learning. The market is expected to double its data storage capacity in the next five years, from 10.1 zettabytes in 2023 to an estimated 21.0 zettabytes in 2027.
The SKAE acquisition provides JLL with additional expertise in critical infrastructure installation, facilities maintenance, and operations management. It will support JLL's ability to assist clients with data center site selection, design, and operations management. SKAE, established in 1998 by Peter Skae and John McPartland, has serviced industries such as finance, healthcare, education, and government.
With the acquisition, SKAE's 75 employees will become part of JLL Work Dynamics. Peter Skae, who will report to Matt Landek, Americas Managing Director for Data Centers at JLL, emphasized the alignment of values between SKAE and JLL, particularly in safety culture and focus on people and policies.
Sanjay Rishi, Americas CEO of Work Dynamics at JLL, noted that SKAE's regional expertise will scale JLL's capacity to meet client demands and enhance data center management capabilities. The acquisition will form the Technical Services division within JLL's Data Center vertical and will continue to operate under the SKAE brand as a JLL company.
InvestingPro Insights
As JLL (NYSE: JLL) fortifies its position in the data center services sector with the strategic acquisition of SKAE Power Solutions, investors and stakeholders may find the following data and insights from InvestingPro particularly relevant.
InvestingPro Data indicates a solid financial footing for JLL, with a market capitalization of 9.36 billion USD and a revenue growth in the last twelve months as of Q1 2024 at 1.89%. The company's gross profit margin stands impressively at 51.56%, reflecting efficient operations and strong pricing power.
In the realm of InvestingPro Tips, it's noteworthy that JLL has been consistently rewarding its shareholders by raising its dividend for 9 consecutive years, signaling confidence in its financial health and future prospects. Additionally, JLL is recognized as a prominent player in the Real Estate Management & Development industry, which may further reassure investors of its market position and strategic moves such as the recent acquisition.
For those interested in gaining deeper insights, there are additional InvestingPro Tips available which delve into various aspects of JLL's performance and outlook. For instance, investors may be intrigued to find that JLL is trading at a low revenue valuation multiple, suggesting potential undervaluation relative to its sales. Moreover, the company's liquid assets exceed its short-term obligations, providing financial stability and the ability to navigate market uncertainties.
To explore these insights in greater detail and access a comprehensive array of metrics and analytics, readers can utilize the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. There are a total of 14 InvestingPro Tips available for JLL, offering a wide spectrum of data points and expert analysis to inform investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.