REDWOOD CITY, CA—Equinix Inc. said Tuesday it had agreed to acquire a portfolio of 24 data center facilities from Verizon Communications Inc. The all-cash, $3.6-billion deal is expected to close by mid-2017.
The acquisition spans 29 buildings and 15 metropolitan areas in North and South America. It adds three new ones to Equinix's market penetration: Houston; Culpeper, VA; and Bogotá, Colombia. President and CEO Steve Smith calls the deal a “unique opportunity” that complements and extends Equinix's strategy to expand its global platform. “It enables us to enhance cloud and network density to continue to attract enterprises, while expanding our presence in the Americas.”
With the Verizon portfolio will come approximately 900 customers, including a significant number of enterprise customers new to Equinix's platform. The deal will add approximately 2.4 million gross square feet and 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.
For Equinix customers, the acquisition taps into a trend on which Americas president Karl Strohmeyer blogged in connection with the Verizon deal. “To stay competitive, companies need to interconnect and collaborate across industries and regions,” Strohmeyer wrote Monday.
“This strategic interconnection trend, which Equinix and industry analysts view as the future of IT, has led to the digitization of the global economy and is driving interest in mobile and cloud technologies and related trends like the Internet of Things and Big Data,” wrote Strohmeyer. “Our customers tell us their need for direct and secure connectivity continues to accelerate, and they're looking to partners and providers to help them expand their reach into more places than ever before.”
Verizon says the sale aligns with its strategy “to focus resources in areas that will help drive digital transformation for enterprise customers, while providing world-class service”—namely, mobile video advertising. The sale does not affect Verizon's managed hosting and cloud offerings, or its data center services delivered from 27 sites in Europe, Asia-Pacific and Canada.
Equinix was advised by Evercore, J.P. Morgan Securities LLC and Davis Polk & Wardwell LLP. Verizon's advisers on the agreement were Citigroup Inc. and Guggenheim Partners, with legal counsel provided by Jones Day.
REDWOOD CITY, CA—
The acquisition spans 29 buildings and 15 metropolitan areas in North and South America. It adds three new ones to Equinix's market penetration: Houston; Culpeper, VA; and Bogotá, Colombia. President and CEO Steve Smith calls the deal a “unique opportunity” that complements and extends Equinix's strategy to expand its global platform. “It enables us to enhance cloud and network density to continue to attract enterprises, while expanding our presence in the Americas.”
With the Verizon portfolio will come approximately 900 customers, including a significant number of enterprise customers new to Equinix's platform. The deal will add approximately 2.4 million gross square feet and 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.
For Equinix customers, the acquisition taps into a trend on which Americas president Karl Strohmeyer blogged in connection with the Verizon deal. “To stay competitive, companies need to interconnect and collaborate across industries and regions,” Strohmeyer wrote Monday.
“This strategic interconnection trend, which Equinix and industry analysts view as the future of IT, has led to the digitization of the global economy and is driving interest in mobile and cloud technologies and related trends like the Internet of Things and Big Data,” wrote Strohmeyer. “Our customers tell us their need for direct and secure connectivity continues to accelerate, and they're looking to partners and providers to help them expand their reach into more places than ever before.”
Verizon says the sale aligns with its strategy “to focus resources in areas that will help drive digital transformation for enterprise customers, while providing world-class service”—namely, mobile video advertising. The sale does not affect Verizon's managed hosting and cloud offerings, or its data center services delivered from 27 sites in Europe, Asia-Pacific and Canada.
Equinix was advised by Evercore,
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