Equinix Adds Asian Muscle

May 1st, 2012 by · Leave a Comment

Equinix (NASDAQ:EQIX, news, filings) has been adding space organically in Asia at quite a good clip, but apparently it wasn't fast enough to keep them happy.  The carrier-neutral colocation giant is buying data center assets and operations across Hong Kong, Singapore, and Shanghai from Hong-Kong-based Asia Tone.  Not quite all of Asia Tone though perhas, as they also seem to have facilities in Jiangsu and Guangzhou, and perhaps others in Hong Kong and Singapore they aren't selling - it isn't clear from the company's website.

In the deal, Equinix will take possession of five existing data centers, a disaster recovery facility, and one data center still under construction.    That last one is in Shanghai, and will feature 80,000 square feet of space.  Equinix already has a Shanghai presence through a partner, but this will give them a solid foothold of their own in mainland China.  It will boost their total global footprint to 104 facilities across 38 markets.

The deal will cost Equinix $230.5M in cash and is expected to close in the third quarter.  Asia Tone generated about $30M annually in 2011 and is expected to be adjusted free cash flow positive for Equinix this year.

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Categories: Datacenter · Mergers and Acquisitions

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