Equinix has announced its intention of acquiring 29 data centers currently controlled by Verizon as the two companies have entered into a definitive purchase agreement.
Equinix Inc. is a California-based colocation provider and IBX data center. As one if not the largest such services provider, the company has expanded and has a worldwide outreach.
Verizon Commmunications Inc, more commonly known as Verizon, is a Delaware-based broadband telecommunications company. It is also considered as being the largest United States service provider of wireless communications.
The purchase agreement between the two companies, which has been declared as being definitive, will target 24 data centers.
Details about the acquisition have been offered and state as follows. Equinix is seeking to buy a 29 data centers portfolio which will include the respective sites and also all their operations.
The acquisition price was set at a $3.6 billion sum and is expected to be an all cash transaction.
The 24 sites are spread out throughout 15 metro areas and include 29 such center buildings. As the details of the acquisitions and its definitive status have been confirmed, the sale is expected to bring benefits to Equinix.
Through the data centers acquisition, the company is expected to strengthen its existing global platform. As such, the centers are expected to increase its United States and also Latin America interconnections.
It should also contribute to the opening of three new market areas in Houston, Culpeper, Virginia and Columbia’s capital, Bogota.
The sale may also contribute to the company’s accelerated access into the strategic and enterprise market areas. Such areas also include the energy and government sectors.
Equinix will be adding an estimated number of 900 new customers to its platform. This value also includes a significant number of enterprise customers which will be new to their platform.
It will also be expanding the company’s gross square feet global footprint with an additional 2.4 million footage. As such, Equinix will reach an approximated total 17 million gross global square footage.
The value is calculated based on its 175 data centers which span across 43 market areas in the Americas, Europe, and the Asia-Pacific zones.
The equinox-Verizon transaction is expected to close sometime in 2017, by the mid of the year, after it satisfied the customary closing conditions.
Amongst the 29 new data centers, one will include the following locations. Culpeper, Bogota, Houston, Los Angeles (Torrance), Miami (Miami and Doral), and New York (Carteret, Piscataway, and Elmsford).
These are just a few of the new data centers to be acquired by Equinix from Verizon. Besides being beneficial for the company’s development, the sale will also advantage customers.
As such, existing and future Equinix customers will beneficiate from a larger coverage. The acquisition will come to translate as the access to new partners, locations, and ecosystems.
Karl Strohmeyer, Equinix’s Americas President, also pointed out the advantage that the acquisition will bring to partner companies.
New or existing companies will be able to leverage the company’s global footprint and also it interconnection services.
As such, companies will be able to construct and base globally consistent platform from within their local metro area.
Steve Smith, the Equinix CEO and President, also presented the company’s market expectations. As such, the acquisition is expected to also advantage shareholders.
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