Equinix expands into Portugal and Spain with $259m Itconic acquisition
Acquisition will include five data centres in four metros, with two located in Madrid, one in Barcelona, one in Seville, and one in Lisbon.
The world’s largest colocation data centre operator Equinix (Nasdaq: EQIX) has entered into an agreement with The Carlyle Group for the purchase of Itconic.
Itconic is a data centre, connectivity and cloud infrastructure solutions provider in Spain and Portugal. It also operates CloudMas, a subsidiary that is focused on supporting enterprise adoption and use of cloud services.
In its last financial fillings, Itconic generated approximately €55.5m or approximately $66.8m of revenues for the period Q2 2017 annualized.
Equinix will purchase the companies in an all-cash transaction totalling €215m or approximately $259m dollars.
The agreement was signed on September 8, 2017, and the acquisition is expected to close in Q4 2017, subject to customary closing conditions including regulatory approval.
The acquisition will include five data centres in four metros, with two located in Madrid, one in Barcelona, one in Seville, and one in Lisbon, and adds approximately 322,000 gross sqf to the Equinix International Business Exchange (IBX) data centre portfolio.
Equinix will serve more than 400 customers in Iberia, including marquis enterprise brands such as L’Oreal, Vueling, Deloitte, BNP Paribas, Repsol, Real Madrid, Randstad, Carlson Wagonlit Travel, Aon and Bank of America. In addition, more than 100 network and mobility companies and more than 90 cloud and IT services companies operate at Itconic, including AWS, Microsoft Azure and Google Cloud.
The acquisition will add more than 250 employees to the Equinix team in Europe.
Eric Schwartz, President, EMEA, Equinix, said: “The large-scale deployments of new direct submarine cables between Europe, Latin America and Africa will connect through Iberia, making it a globally relevant key interconnection hub and a geographically important region for Equinix.
“With the acquisition of Itconic, we will continue to deliver the level of excellence and Interconnection that the industry expects and which our customers demand. Our ongoing growth signifies our commitment to the region and to developing our global footprint to support the growing digital business needs of our customers.”
Some of the submarine cables already connected to Itconic’s Lisbon data center are ACE (African Coast to Europe), WACS (West Africa Cable System), Tata Global Network. The MainOne cable will be connected in the future. In addition, the data center in Seville is connected to Canalink.
Faustino Jiménez, CEO, Itconic, said: “With our incorporation into Equinix’s global platform, companies operating in the Iberian peninsula will finally be able to access the largest network of interconnected data centers in the world and take advantage of its more than 180 centers in 44 different markets.
“At Itconic, we are proud to be part of a world-leading company that is at the forefront of IT infrastructure services and offers services that enable the digital transformation of companies on all five continents. We believe in the power of Interconnection, and this acquisition reinforces our vision of how technology can transform the way companies do business.”
Equinix currently operates more than 180 IBX data centers in 44 markets.