If you thought Equinix (NASDAQ:EQIX, news, filings) had satisfied its appetite for inorganic expansion in favor of organic buildouts worldwide, you were wrong. The organic buildouts continue of course, but the giant of the carrier neutral colocation space said this morning that it would acquire Frankfurt-based ancotel, further strengthening its European presence.
ancotel’s Kleyer90 facility is one of continental Europe’s premier interconnection points with 2,100 square meters of space, 400 network customers, and 6,000 cross connects, and is the obvious prize here for Equinix. But ancotel also has footholds in Hong Kong, London, and Miami, plus the former LIDARC facility out on Long Island which didn’t get mentioned – I wonder what happened with that one.
Financial details of the acquisition were not disclosed, but ancotel generated $21.4M in revenue in 2011 and Equinix says the valuation paid is inline with its own current EBITDA multiple. The deal is expected to close in the third quarter, and will not change their objective of being adjusted FCF positive in 2013.
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