Equinix reached a definitive agreement to acquire a portfolio of 24 data center sites and their operations from Verizon Communications for $3.6 billion in cash.
The acquired portfolio includes approximately 900 customers, with a significant number of enterprise customers new to Equinix’s platform, and it adds approximately 2.4 million gross square feet. It will bring Equinix’s total global footprint to 175 data centers in 43 markets and approximately 17 million gross square feet across the Americas, Europe and Asia-Pacific markets.
Some highlights:
- The transaction includes 29 data center buildings across 24 sites in 15 metro areas, including Atlanta (Atlanta and Norcross), Bogotá, Boston (Billerica), Chicago (Westmont), Culpeper, Dallas (Irving, Richardson-Alma and Richardson-Pkwy), Denver (Englewood), Houston, Los Angeles (Torrance), Miami (Miami and Doral), New York (Carteret, Elmsford and Piscataway), São Paulo, Seattle (Kent), Silicon Valley (Santa Clara and San Jose), and Washington, D.C. (Ashburn, Manassas and Herndon).
- The addition of the new data center assets will greatly expand Equinix’s global platform for enterprises by adding new markets and Fortune 1000 enterprise customers. It expands capacity in existing markets, such as Atlanta, Denver, Miami, New York, São Paulo, Seattle and Silicon Valley, and it provides a platform for the future expansion of the acquired data centers.
- The NAP (Network Access Point) of the Americas facility in Miami is a key interconnection point and will become a strategic hub and gateway for Equinix customer deployments servicing Latin America. Combined with the Verizon data centers in Bogotá and the NAP do Brasil in São Paulo, it will strategically position Equinix in the growing Latin American market.
- The NAP of the Capital Region in Culpeper, VA is a highly secure campus focused on government agency customers, strengthening Equinix as a platform of choice for government services and service providers.
- Approximately 250 Verizon employees, primarily in the operations functions of the acquired data centers, will become Equinix employees.
- Equinix was advised by Evercore, J.P. Morgan Securities LLC and Davis Polk & Wardwell LLP.
Equinix said benefits of the acquisition include increasing its platform’s interconnections in the U.S. and Latin America; opening three new markets in Bogotá, Culpeper and Houston; and accelerating its penetration of the enterprise and strategic market sectors, including government and energy.
“This unique opportunity complements and extends Equinix’s strategy to expand our global platform. It enables us to enhance cloud and network density to continue to attract enterprises, while expanding our presence in the Americas. The new assets will bring hundreds of new customers to Platform Equinix while establishing a presence in new markets and expanding our footprint in existing key metros. The deal will also provide significant value for shareholders as the proposed transaction is expected to be immediately accretive to our adjusted funds from operations per share upon close,” stated Steve Smith, President and CEO, Equinix.
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Equinix has just broken ground on its eight data center in the San Francisco Bay area. The new building, Equinix SV10, joins two other data centers on the company’s campus in south San Jose. The first phase is expected to come online in 2017 with capacity for about 800 cabinets. Karl Strohmeyer, President of the Americas for Equinix, says this first phase of expansion represents an investment of about $125 million. Equinix is aiming for 100%…
Equinix to Sell 8 European Data Centers to Digital Realty
Last week, Equinix announced plans to sell eight of its European data centers to Digital Realty Trust for the amount of $874.4 million. These facilities include: TelecityGroup’s Bonnington House, Sovereign House, Meridian Gate and Oliver’s Yard data centers and Equinix’s West Drayton data center in London; TelecityGroup’s Science Park and Amstel Business Park I in Amsterdam; and TelecityGroup’s Lyonerstrasse data center in Frankfurt.
The sale of these assets was a pre-condition set by the European Commission in November 2015 for Equinix’s acquisition of TelecityGroup plc.
Additionally, Equinix has separately negotiated with Digital Realty a binding option for Equinix to acquire Digital Realty’s operating business including its real estate and facility in St. Denis, Paris where Equinix has an established presence with its PA2 and PA3 International Business Exchange (IBX) data centers.
- On January 15, 2016, Equinix completed the acquisition of TelecityGroup plc in a transaction valued at approximately $3.8 billion (£2.6 billion). The addition of TelecityGroup’s 34+ data centers, net of the divestment, more than doubled Equinix’s capacity in Europe, fortifying its position as the largest retail colocation provider in the region and in the world.
