Equinix acquires 24 data centre sites in $3.6bn deal
Verizon Communications will deliver 24 sites comprising of 29 data centre building across 15 metro areas.
Equinix, a global interconnection and data centre company, has entered into an agreement with Verizon Communications to purchase 24 data centre sites and their operations. The $3.6b all cash transaction will see the purchase of 24 sites comprising of 29 data centre buildings across 15 metro areas.
The agreement is expected to further strengthen Equinix's global presence with increased influence in the US and Latin America. Furthermore, it opens three new markets for the company in Bogota, Culpeper and Houston.
Steve Smith, president and CEO, Equinix said: "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."
He added: "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."
The acquired portfolio will also include approximately 900 customers, as well as an estimated 2.4 million gross square feet. Equinix's total number of owned data centres will reach 175, and will boast an active presence in 43 markets.
Karl Strohmeyer, president, Americas, Equinix said: "This deal is a significant win for our existing customers, who will gain access to new locations, ecosystems and partners. It is also a win for the new companies joining Equinix, as they will be able to leverage Equinix's global footprint and unique interconnection services. At Equinix, companies can architect a globally consistent platform within local metros, keeping their critical data and processing capabilities as close as possible to the digital edge and end-users."