Equinix agreed to acquire a portfolio of 13 data centers across Canada from BCE Inc. (“Bell”) for US$750 million (CA$1,041 million) in cash.
The 13 data center sites, which represent 25 Bell data center facilities, are expected to generate approximately US$105 million annualized revenue, which represents a purchase multiple of approximately 15x EV / adjusted EBITDA. The deal includes approximately 1.2 million gross square feet of data center space and 400,000 square feet of colocation space.
The deal will expand Equinix’s coverage in Canada coast to coast, making it a market leader in data center and interconnection services. In addition to adding new capacity in Toronto, Ontario, where Equinix currently operates two International Business Exchange data centers, it will extend Equinix’s interconnection services to seven new metros. These metros include Calgary, Alberta; Kamloops and Vancouver, British Columbia; Millidgeville, New Brunswick; Montreal, Quebec; Ottawa, Ontario; and Winnipeg, Manitoba.
Charles Meyers, President and CEO, Equinix, states: “Canadian businesses are in the midst of a significant transformation as they evolve their operations to be increasingly digital and cloud-enabled. With a platform that enables companies to increase the scale, reach and connectivity of their growing digital businesses, Equinix provides a compelling vision for businesses to rapidly and broadly interconnect with the people, locations, cloud services and data that matter most to their business. This expansion is a significant win for Canadian businesses, as well as for multinational companies that can leverage Platform Equinix to increase their digital presence in Canada by interconnecting to a rich ecosystem of customers, business partners and other strategic companies in Canada.”
