Equinix Acquisition of Verizon Data Centers Injects Growth
The $3.6B deal includes 29 data centers across 15 cities
Equinix (EQIX) recently announced it will acquire 29 data center facilities across 15 cities from Verizon Communications for $3.6 billion in cash. The transaction will expand its operations further into more U.S. cities and Latin America.
The portfolio includes nearly 1,000 customers and 2.4 million square feet of new data center space. Equinix expects the acquisition to add $450 million in revenue to its platform.
Verizon joins several telecom companies that have sold their data center portfolio to focus on services that they consider their core business. This acquistion adds to the recent announcement that CenturyLink is selling its data center business for $2.3 billion to a private-equity consortium led by BC Partners.
The telecoms were on a data center acquistion binge several years ago, but they learned the business is very different than their core service offerings, not to mention, the competitive landscape with major movers and shakers in the data center services arena by companies such as Amazon, Mirosoft and others.
