Equinix to buy 24 Verizon data centres for USD 3.6 billion

News Broadband United States 6 DEC 2016
Equinix to buy 24 Verizon data centres for USD 3.6 billion
Verizon has agreed to sell 24 data centres in the US and Latin America to Equinix for USD 3.6 billion cash. The deal is latest among US operators exiting the data centre business in order to focus more on managed services to business customers and follows Verizon agreeing nearly USD 10 billion in acquisitions in the past year, such as Yahoo, XO and Fleetmatics. The sale does not affect Verizon’s managed hosting and cloud offerings, or its data centre services delivered from 27 sites in Europe, Asia-Pacific and Canada.

The 24 sites consist of 29 data centre buildings across 15 metro areas. Equinix said the deal will boost its interconnection in the US and Latin America, take it into the three new markets Bogota, Culpeper and Houston, and strengthen the company's presence in key industry verticals such as government and energy.

The acquired portfolio includes approximately 900 customers, with a significant number of enterprise customers new to Equinix, and it adds 2.4 million gross square feet and 250 employees. It will bring Equinix's total global footprint to 175 data centres in 43 markets and approximately 17 million gross square feet across the Americas, Europe and Asia-Pacific markets.  

The sites to be acquired include Atlanta (Atlanta and Norcross), Bogota, Boston (Billerica), Chicago (Westmont), Culpeper Dallas (Irving, Richardson-Alma and Richardson-Pkwy), Denver (Englewood), Houston, Los Angeles (Torrance), Miami (Miami and Doral), New York (Carteret, Elmsford and Piscataway), Sao Paulo, Seattle (Kent), Silicon Valley (Santa Clara and San Jose), and Washington, DC (Ashburn, Manassas and Herndon). In addition, Equinix gains Network Access Points in Miami and the Culpeper, Virgina areas to strengthen its ties to respectively Latin America and the US government market. 

Categories:

Fixed

Companies:

Equinix,  Verizon

Regions:

South America

Countries:

United States

Tags:

Hosting - cloud - data centres, M&A buyouts & divestments

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