Equinix Acquires Verizon Cloud Data Centers for $3.6 Billion
Equinix is acquiring 29 data centers across 24 sites from Verizon Communications for $3.6 billion in cash. The long-rumored deal potentially propels Equinix’s cloud interconnection strategy forward while freeing Verizon to focus on network services.
The acquired portfolio includes approximately 900 customers, with a “significant” number of enterprise customers new to Equinix’s platform, and it adds approximately 2.4 million gross square feet, Equinix said. Going forward, Equinix’s will now own 175 data centers in 43 markets and approximately 17 million gross square feet across the Americas, Europe and Asia-Pacific markets. Roughly 250 Verizon employees will join Equinix as part of the deal, which is expected to close by mid-2017, the companies said.
Verizon attempted and failed to compete head-on against Amazon Web Services (AWS) and Microsoft Azure in the public cloud market in recent years. The company has been trying to sell off the data centers for roughly a year. Rumors about Equinix potentially buying Verizon’s data centers have swirled since October 2016.
Equinix: Not Just Another Cloud Provider
Equinix, meanwhile, has successfully positioned itself as a network and cloud interconnection company. Equinix essentially offers channel partners and customers secure, high-speed pathways to Equnix’s own data centers and numerous third-party clouds.
Steve Smith, president and CEO, Equinix, said:
“This unique opportunity complements and extends Equinix’s strategy to expand our global platform. It enables us to enhance cloud and network density to continue to attract enterprises, while expanding our presence in the Americas. The new assets will bring hundreds of new customers to Platform Equinix while establishing a presence in new markets and expanding our footprint in existing key metros. The deal will also provide significant value for shareholders as the proposed transaction is expected to be immediately accretive to our adjusted funds from operations per share upon close.”
Equinix, meanwhile, also has been gaining channel momentum. Christopher Rajiah recently hosted roughly 50 strategic partners and MSPs at a private dinner during Amazon’s AWS re:Invent conference last week in Las Vegas. Many of those partners leverage on-premises hardware relationships and Equinix networks to build and manage hybrid clouds for end-customers.
More M&A: Track all VAR, MSP and CSP mergers and acquisitions by visiting the ChannelE2E Milestones section each day.