The week before Christmas starts off with a bit of M&A down under. The global data center and interconnection provider Equinix announced on Sunday an agreement with the Ontario Teachers' Pension Plan to acquire Metronode for A$1.035B, or US$792M give or take.
Metronode operates 10 data centers across six Australian markets that span some 20,000 square meters of colo space. Two of those, Sydney and Melbourne, are already Equinix markets. The other four will be new markets for the company: Perth, Canberra, Adelaide, and Brisbane. The combined footprint adds up to 15 data centers nationwide.
On the financial front, Metronode generated A$60M (US$46M) in the 12 months ending September 30, 2017. While EBITDA was not mentioned, the multiple was clearly quite high. That implies that Equinix sees a lot of potential in the underlying assets. Metronode owns 90% of the underlying land, some of which offers them opportunities to build additional capacity.