Telecom major Verizon Communications announced its deal to sell 24 data center sites to Equinix for $3.6 billion.
Equinix will own and manage 24 data sites, consisting of 29 data center buildings, across 15 metro areas including 3 new metros of Bogata, Houston and Culpeper, VA.
Verizon’s strategy is to focus on digital transformation for enterprise customers, while providing wireless service. The sale does not affect Verizon’s managed hosting and cloud offerings, or its data center services delivered from 27 sites in Europe, Asia Pacific and Canada.
Benefits to Equinix
The addition of new data centers and customers will strengthen Equinix’s platform by increasing interconnection in the U.S. and Latin America and accelerating penetration of the enterprise and strategic market sectors, including government and energy.
The acquired data center includes 900 customers, with a number of enterprise customers new to Equinix’s platform, and it adds approximately 2.4 million gross square feet. It will bring Equinix’s total global footprint to 175 data centers in 43 markets and approximately 17 million gross square feet across the Americas, Europe and Asia-Pacific markets.
Approximately 250 Verizon employees, primarily in the operations functions of the acquired data centers, will become Equinix employees.
Steve Smith, president and CEO of Equinix, said: “The assets will bring hundreds of new customers to Platform Equinix while establishing a presence in new markets and expanding footprint in existing key metros.”
Citi and Guggenheim Partners are acting as financial advisors to Verizon. Jones Day is acting as legal advisor to Verizon. Evercore, J.P. Morgan Securities and Davis Polk & Wardwell advised Equinix.
