Equinix splashes $750m on acquisition of 13 Canadian data centre hubs
The eight metro expansion is set to enable Canadian businesses and multinationals operating in Canada to accelerate digital transformation.
Equinix (Nasdaq: EQIX) has entered into a definitive agreement to purchase a portfolio of 13 data centres across Canada from BCE Inc. (Bell) for $750 million.
The 13 data centre sites, which represent 25 Bell data centre facilities, are expected to generate $105 million annualised revenue.
The acquisition is set to close in the second half of 2020, subject to customary closing conditions including regulatory approval, and it is expected to be immediately accretive to Equinix’s adjusted funds from operations (AFFO) per share upon close, excluding integration costs.
“Canadian businesses are in the midst of a significant transformation as they evolve their operations to be increasingly digital and cloud-enabled,” said Charles Meyers, President and CEO, Equinix.
“With a platform that enables companies to increase the scale, reach and connectivity of their growing digital businesses, Equinix provides a compelling vision for businesses to rapidly and broadly interconnect with the people, locations, cloud services and data that matter most to their business.
“This expansion is a significant win for Canadian businesses, as well as for multinational companies that can leverage Platform Equinix to increase their digital presence in Canada by interconnecting to a rich ecosystem of customers, business partners and other strategic companies in Canada.”
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Under the terms of the agreement, Equinix and Bell will begin a strategic partnership to enable enterprises in Canada to leverage hybrid multi-cloud solutions to accelerate their digital transformation.
“The acquisition of these 13 strategic assets further extends the depth and breadth of Equinix’s global platform, which currently spans 26 countries and 55 metros,” said Jon Lin, President, Americas, Equinix.
“It will position Equinix as a market leader for data centre and interconnection services in Canada, with high-quality assets from coast to coast and a large, diversified ecosystem of Canadian businesses.
“Additionally, it opens key gateways for North America to Asia through Vancouver and North America to Europe through the submarine cable systems in the Millidgeville area.”
In addition to adding new capacity in Toronto, Ontario, where Equinix currently operates two International Business Exchange data centres, it will extend Equinix’s interconnection services to seven new metros.
These metros include Calgary, Alberta; Kamloops and Vancouver, British Columbia; Millidgeville, New Brunswick; Montreal, Quebec; Ottawa, Ontario; and Winnipeg, Manitoba.
Tom Little, President, Bell Business Markets said, “Our partnership with Equinix will further accelerate digital transformation opportunities for Canadian enterprise customers, combining access to Equinix’s interconnected global data centre platform with Bell’s advanced broadband network connections, wide range of cloud solutions and experienced professional services team”.
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