REDWOOD CITY, Calif.,
Dec. 6, 2016 /PRNewswire/ -- Equinix,
Inc. (Nasdaq: EQIX), the global interconnection and data center
company, today announced it has entered into a definitive agreement
to purchase a portfolio of 24 data center sites and their
operations from Verizon Communications Inc. (NYSE, Nasdaq: VZ) for
$3.6 billion in an all cash
transaction. The 24 sites consist of 29 data center buildings
across 15 metro areas. The addition of these strategic
facilities and customers will further strengthen Equinix's global
platform by: increasing interconnection in the U.S. and
Latin America; opening three new
markets in Bogotá, Culpeper and
Houston; and accelerating
Equinix's penetration of the enterprise and strategic market
sectors, including government and energy.
The acquisition of these assets will enable Equinix customers to
further respond to a key market trend that is enabling their
evolution from traditional businesses to "digital businesses" --
the need to globally interconnect with people, locations, cloud
services and data. Additionally, customers will have the
opportunity to operate on an expanded global platform to process,
store and distribute larger volumes of latency sensitive data and
applications at the digital edge, closer to end-users and local
markets.
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.
It will bring Equinix's total global footprint to 175 data
centers in 43 markets and approximately 17 million gross square
feet across the Americas, Europe
and Asia-Pacific markets.
The transaction is expected to close by mid-2017, subject to the
satisfaction of customary closing conditions.
Highlights / Key Facts
- The transaction includes 29 data center buildings across 24
sites in 15 metro areas, including Atlanta (Atlanta and Norcross), Bogotá, 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), São Paulo,
Seattle (Kent), Silicon Valley (Santa Clara and San
Jose), and Washington, D.C.
(Ashburn, Manassas and Herndon).
- The addition of the new data center assets will greatly expand
Equinix's global platform for enterprises by adding new markets and
Fortune 1000 enterprise customers. It expands capacity in existing
markets, such as Atlanta, Denver,
Miami, New York, São Paulo, Seattle and Silicon Valley, and it provides a
platform for the future expansion of the acquired data
centers.
- The NAP (Network Access Point) of the Americas facility in
Miami is a key interconnection
point and will become a strategic hub and gateway for Equinix
customer deployments servicing Latin
America. Combined with the Verizon data centers in Bogotá
and the NAP do Brasil in São Paulo, it will strategically position
Equinix in the growing Latin American market.
- The NAP of the Capital Region in Culpeper, VA is a highly secure campus focused
on government agency customers, strengthening Equinix as a platform
of choice for government services and service providers.
- Approximately 250 Verizon employees, primarily in the
operations functions of the acquired data centers, will become
Equinix employees.
- Equinix was advised by Evercore, J.P. Morgan Securities LLC and
Davis Polk & Wardwell LLP.
Quotes
Steve Smith, President and
CEO, Equinix:
"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."
Karl Strohmeyer, President,
Americas, Equinix:
"This deal is a significant win
for our existing customers, who will gain access to new locations,
ecosystems and partners. It is also a win for the new companies
joining Equinix, as they will be able to leverage Equinix's global
footprint and unique interconnection services. At Equinix,
companies can architect a globally consistent platform within local
metros, keeping their critical data and processing capabilities as
close as possible to the digital edge and end-users."
Investor Call
Equinix will hold an investor conference call today at
8:30 a.m. Eastern Time (5:30 a.m. Pacific Time) to discuss the details of
this announcement. To hear the conference call live, please dial
1-210-234-8004 (domestic and international) and reference the
passcode (EQIX). A simultaneous live Webcast of the call will be
available on the company's website at www.equinix.com, under the
investor relations heading. This webcast will be recorded and
available at the same location shortly after the call is
concluded.
A replay of the call will be available beginning on Tuesday, December 6, 2016 (approximately one hour
after the live call has concluded) through February 20, 2017 by dialing 1-203-369-4007 and
referencing passcode "2016."
Additional Resources
- Equinix Website Landing Page with Data Center Map, Photos and
Additional Transaction Details[website]
- Interconnection Expanded: Equinix to Purchase 24 Data Center
Sites from Verizon [blog post]
- Colocation-Based Interconnection Will Serve as the 'Glue' for
Advanced Digital Business Applications [Gartner Report by
Bob Gill, July 2016]
About Equinix
Equinix, Inc. (Nasdaq: EQIX) connects the world's leading
businesses to their customers, employees and partners inside the
most interconnected data centers. In 40 markets across five
continents, Equinix is where companies come together to realize new
opportunities and accelerate their business, IT and cloud
strategies. www.equinix.com.
Forward Looking Statements
This press release contains forward-looking statements which
are based on current expectations, forecasts and assumptions that
involve risks and uncertainties that could cause actual results to
differ materially from expectations discussed in such
forward-looking statements, including statements related to the
acquisition of data centers from Verizon, the expected benefits
from the acquisition and the expected timing for closing the
acquisition. When used in this document, the words
"anticipates", "can", "will", "look forward to", "expected" and
similar expressions and any other statements that are not
historical facts are intended to identify those assertions as
forward-looking statements. Factors that might cause such
differences include, but are not limited to, the failure of one or
more conditions to the acquisition of data centers from Verizon to
be satisfied; the occurrence of any event, change or other
circumstance that would compromise our ability to complete the
acquisition of such data centers from Verizon within the expected
timeframe or at all; the possibility that the anticipated
benefits from the proposed acquisition cannot be fully realized or
may take longer to realize than expected; unanticipated costs
or difficulties relating to the integration of data centers or
companies we have acquired or will acquire into Equinix, including
the data centers we may acquire from Verizon; the challenges
of acquiring, operating and constructing IBX centers and
developing, deploying and delivering Equinix services, including in
the Verizon data centers; a failure to receive significant revenue
from customers in recently built out or acquired data centers,
including those acquired from Verizon; failure to complete any
financing arrangements contemplated from time to time; competition
from existing and new competitors; the ability to generate
sufficient cash flow or otherwise obtain funds to repay new or
outstanding indebtedness; the loss or decline in business from our
key customers; and other risks described from time to time in
Equinix's filings with the Securities and Exchange Commission.
Accordingly, no assurances can be given that any of the events
anticipated by the forward-looking statements will transpire or
occur, or if any of them do so, what impact they will have on
Equinix. In particular, see Equinix's recent quarterly and annual
reports filed with the Securities and Exchange Commission, copies
of which are available upon request from Equinix. Equinix does not
assume any obligation to update the forward-looking information
contained in this press release.
Equinix and IBX are registered trademarks of Equinix, Inc.
International Business Exchange is a trademark of Equinix,
Inc.
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SOURCE Equinix, Inc.