Equinix to buy Japan's Bit-isle for JPY 33 bln

Data centre operator Equinix is expanding in Japan with the acquisition of Tokyo-based Bit-isle. The offer of JPY 922 per share cash values Bit-isle at JPY 33.3 billion (USD 280 million). The acquisition of Bit-isle will further strengthen Equinix's position in Asia-Pacific, the company's fastest growing region, as well as improve the company's market position in Japan. 

The integration of Bit-isle and Equinix's existing operations in Japan will create the fourth largest data centre operator in Japan. Equinix will gain five data centres in Tokyo and one in Osaka in close proximity to the existing Equinix International Business Exchange data centres in Japan. After the completion of the TY5 site in Q1 2016, Equinix will have a total 10 IBX data centres in Tokyo and two in Osaka. 

Bit-isle's board endorsed the bid, which is conditional on Equinix acquiring at least two-thirds of the shares. The major shareholders of Bit-isle, Warehouse Terrada, Kohei Terada and Yasunobu Terada, have agreed to tender all of their shares, representing 29.74 percent of Bit-isle shares outstanding. The transaction is expected to add to Equinix's adjusted funds from operations per share upon close. The Bank of Tokyo-Mitsubishi has committed to provide a one-year senior bridge term loan facility to fund the acquisition.