Equinix to Buy Some Verizon Data Centers for $3.6 Billion
December 06 2016 - 11:00AM
Dow Jones News
By Austen Hufford
Data center company Equinix Inc. said it would buy 24 data
center sites from Verizon Communications Inc. for $3.6 billion in a
move to expand its offerings.
Equinix said the deal includes 29 data center buildings across
15 metro areas. The company highlighted the locations in Miami,
where a network access point connects the U.S. to Latin America,
and another in Virginia, which connects with government
customers.
In a letter to customers, Equinix Chief Executive Steve Smith
said the growing needs of its customers for more partners in more
places led to the deal.
The deal also includes about 250 Verizon employees.
Verizon has been selling physical assets in recent years,
including multibillion assets sales to Frontier Communications
Corp. and American Tower Corp.
Verizon CEO Lowell McAdam said at an investor conference Tuesday
that Verizon didn't have very much scale in data centers so it was
better to sell them and put that money to better use.
The carrier wants to "trim the branches of the tree so the tree
can be stronger," Mr. McAdam said.
Shares of Equinix rose 2.75% in recent trading as Verizon shares
rose 0.9%.
--Ryan Knutson contributed to this article.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
December 06, 2016 10:45 ET (15:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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