Equinix kicked off the school year with some consolidation across the Pacific. The data center REIT announced this morning that its Japanese subsidiary has commenced a cash tender offer for shares of Tokyo's Bit-isle, Inc. that has been blessed by the latters board of directors. If successful over the next six or seven weeks, the deal will work out to a purchase price of about $280M in cash.
Bit-isle operates five data centers in Tokyo and one in Osaka, which is not too different from what Equinix will have once its TY5 facility comes online. Combined, the two footprints will make up the fourth largest data center provider in Japan according to the release, behind the likes of NTT and KDDI/Telehouse. Equinix has been investing in its APAC footprint on multiple fronts, as it looks to raise its marketshare in the region to match what it already has in the US and Europe.
The greater scale will help boost Equinix's Japanese interconnection business as well, adding colo space in close proximity to Equinix's current exchange infrastructure that will tethered in the near future. In fact, Bit-isle has rather more raw space than Equinix, with some 40,000 square meters at its Tokyo facilities alone. Bit-isle does about $150M in annual revenue.