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Equinix to acquire 29 datacentres from Verizon for $3.6bn

Colocation giant Equinix hits the acquisition trail once more, as it continues on its quest to expand its global datacentre footprint

Equinix is set to acquire 24 datacentre sites from telecommunications giant Verizon for $3.6bn, paving the way for the colocation firm to expand its footprint in the US and Latin America.

The deal will see Equinix pick up 29 facilities, spread across 24 datacentre campuses, in 15 metro areas, as the firm continues in its quest to build out its datacentre portfolio across the globe.

These metros include areas the company has yet to site facilities of its own, including Bogotá, Columbia; Culpeper, Virginia; and Houston, Texas. This is as well as places where it already has existing capacity, such as Atlanta, Denver, Miami and Silicon Valley.

Once the deal closes, which Equinix predicts will be in mid-2017, the company’s global datacentre portfolio will consist of 175 sites, spanning approximately 17 million gross square feet across the Americas, Europe and the Asia-Pacific markets.

As a result of the deal, around 250 Verizon employees will also be absorbed into Equinix to oversee the continued operations of the acquired sites.

Steve Smith, CEO and president of Equinix, said the deal stands to benefit customers by providing them with a wider selection of sites worldwide whereby they host and deliver their IT services from.

“The new assets will bring hundreds of customers to Platform Equinix while establishing a presence in new markets and expanding our footprint in existing key metros,” he said.

“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 on close.”

Read more about Verizon’s datacentre business

A question mark has remained over the fate of Verizon’s datacentre portfolio for much of 2016, after reports in the US at the start of the year suggested the firm had appointed Citigroup to oversee the sale of around 48 of its facilities.

Further speculation about the firm’s plans for the sites developed in October 2016 when an analyst report suggested Equinix was on the cusp of acquiring a number of Verizon’s facilities for around $3.5bn.

Verizon originally bought its way into the colocation market in 2011, after paying out $1.4bn to acquire Terremark.

In a statement, Verizon said the deal is a sign of the company’s commitment to focusing resources on areas that will support the digital transformation efforts of its enterprise customers.

“The sale does not affect Verizon’s managed hosting and cloud offerings, or its datacentre services delivered from 27 sites in Europe, Asia-Pacific and Canada,” the statement added.

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