Equinix To Acquire 24 Data Center Sites From Verizon In $3.6 Bln Cash Deal

(RTTNews) - Global interconnection and data center company Equinix, Inc. (EQIX) Tuesday said it signed a definitive agreement to purchase a portfolio of 24 data center sites and their operations from Verizon Communications Inc. (VZ) for $3.6 billion in an all cash transaction. The transaction is expected to close by mid-2017.

Approximately 250 Verizon employees of the acquired data centers, will become Equinix employees.

Equinix said the 24 sites consist of 29 data center buildings across 15 metro areas. The addition of these strategic facilities and customers will add up interconnection in the U.S. and Latin America; opening three new markets in Bogotá, Culpeper and Houston; and accelerating Equinix's penetration of the enterprise and strategic market sectors, including government and energy.

The acquired portfolio includes approximately 900 customers, with a significant number of enterprise customers new to Equinix's platform, and it adds approximately 2.4 million gross square feet. It will bring Equinix's total global footprint to 175 data centers in 43 markets and approximately 17 million gross square feet across the Americas, Europe and Asia-Pacific markets.

The Network Access Point of the Americas facility in Miami is a key interconnection point and will become a strategic hub and gateway for Equinix customer deployments servicing Latin America.

Equinix was advised by Evercore, J.P. Morgan Securities LLC and Davis Polk & Wardwell LLP.

Steve Smith, President and CEO, Equinix said, "The deal will also provide significant value for shareholders as the proposed transaction is expected to be immediately accretive to our adjusted funds from operations per share upon close."