In a blockbuster deal for the data center sector, Equinix will acquire 24 data center sites from Verizon, including the two crown jewels of its portfolio – the NAP of the Americas in Miami and the NAP of the Capital Region in Culpepper, Virginia.
Equinix, which is already the market leader in the colocation business, will pay $3.6 billion for the assets in an all cash transaction. The deal has been rumored for months, and the Verizon assets have been on the market for at least a year.
The portfolio Equinix is acquiring includes approximately 900 customers, and 29 data center buildings across 24 sites, comprising 2.4 million square feet. The deal boosts Equinix’s total global footprint to 175 data centers in 43 markets spanning 17 million square feet.
Most importantly, the Verizon deal provides Equinix with a commanding presence in Latin American markets. The massive NAP of the Americas is a key interconnection gateway to South America, and the deal includes Verizon data centers in Bogotá and the NAP do Brasil in São Paulo.
The deal also provides Equinix with a larger relationship with the U.S. government and military, which house high-security IT and communications operations at the NAPs in both Culpeper and Miami.
“This unique opportunity complements and extends Equinix’s strategy to expand our global platform,” said Steve Smith, the President and CEO of Equinix. “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,” Smith added.”
The 24 sites consist of 29 data center buildings across 15 metro areas. This includes ttree new markets in Bogotá, Culpeper and Houston, where the Verizon presence will add customers from the energy industry. Other markets and sites include:
- Atlanta (Atlanta and Norcross)
- Boston (Billerica)
- Chicago (Westmont)
- Dallas (Irving, Richardson-Alma and Richardson-Pkwy)
- Denver (Englewood)
- Los Angeles (Torrance)
- Miami (Doral)
- New York (Carteret, Elmsford and Piscataway)
- Seattle (Kent)
- Silicon Valley (Santa Clara and San Jose)
- Northern Virginia (Ashburn, Manassas and Herndon).
Approximately 250 Verizon employees, primarily in the operations functions of the acquired data centers, will become Equinix employees.
The deal is the latest in a series of acquisitions that are reshaping the data center industry. With multiple assets reportedly for sale – including both companies and data center portfolios – the disruptive deals are likely to continue. The data center M&A action may be juiced by the Verizon sale, which strengthens Equinix’ position and could prompt rivals to contemplate defensive moves.