Equinix to Buy 25 Data Center Facilities from Bell for $750 Million
June 01 2020 - 9:32AM
Dow Jones News
By Dave Sebastian
Equinix Inc. is buying 25 data-center facilities from the
Canadian communications company Bell for 1.04 billion Canadian
dollars ($750 million) in cash, the companies said Monday.
Equinix, a data-center company, said the deal would add to its
adjusted funds from operations upon closing, excluding integration
costs. The data centers facilities, located at 13 sites in eight
Canadian cities, are expected to contribute $105 million to
Equinix's annual revenue, it said.
The companies expect the transaction to close in the second half
of the year.
Equinix said the acquisition will allow it to serve the Canadian
market coast to coast. The company will be able to add a capacity
in Toronto as well as expand to Calgary, Kamloops, Vancouver,
Millidgeville, Montreal, Ottawa and Winnipeg, it said. The data
centers to be acquired serve more than 600 customers, and Equinix
said it currently has 210 data cents in 55 metro areas.
Bell, part of BCE Inc., said it will continue to own and operate
five data centers located in Calgary, Halifax, Saint John, St.
John's and Toronto.
The companies said they will start a partnership that enables
Bell enterprise clients to fully access Equinix's network and cloud
products.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
June 01, 2020 09:17 ET (13:17 GMT)
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