Equinix has announced its expansion into Africa through its intended acquisition of MainOne, the West African data centre and connectivity provider active in Nigeria, Ghana and Cote d'Ivoire. The acquisition is expected to close in Q1 2022, subject to customary closing conditions including regulatory approvals. The transaction has an enterprise value of USD 320 million and is expected to be AFFO-accretive upon closing, excluding integration costs.
Equinix said this marks the first step in its long-term strategy to become an African carrier-neutral digital infrastructure company. Nigeria has a population of more than 200 million people and is Africa's largest economy. Along with Ghana, it has become an established data centre hub, making the acquisition a pivotal entry point into the continent, Equinix said.
Main One was founded by Funke Opeke in 2010, has enabled connectivity for the business sector in Nigeria, and now has digital infrastructure assets including three operational data centres and another due to open in Q1 2022. Upon closing, these facilities will add more than 64,000 gross square feet of space to Platform Equinix, with 570,000 square feet of land for future expansions, Equinix said.
Main One owns and operates a subsea network from Nigeria to Portugal as well as 1,200 kilometers of terrestrial fibre in southern Nigeria. These improve connectivity to and from Europe, West African countries, and the major business sectors in Nigeria, Equinix said. The facilities generate approximately USD 60 million in annualised revenue with a purchase multiple of approximately 14 x EBITDA.
