Equinix has found another M&A target and a new international market region to attack. The global data center company has entered into an agreement to acquire the cloud and data center specialist Itconic.
Itconic operates five data centers. Two are in the Spanish capital of Madrid, one is in the Portuguese capital of Lisbon, and the other two are in the key Spanish cities of Barcelona and Seville. In all they will add some 322,000 square feet to Equinix's global footprint and give the company an initial presence on the Iberian peninsula. They also have a subsidiary, CloudMas, which supports enterprises migrating to the cloud.
Southern European network infrastructure has been gaining momentum lately, as investments from around the world seek to take advantage of the region's proximity to growing markets in Africa and the Middle East. There is also the new MAREA cable system coming soon, which will provide direct access across the Atlantic to Virginia and those cable efforts across the South Atlantic to Brazil that will improve connectivity to Latin America.
Itconic brings in annualized revenues of around $66.8M, and the purchase will cost Equinix €215M, or about $259M, in cash.