Data centre services provider Equinix said that it has entered into a definitive agreement to acquire data centre and internet exchange services provider Switch & Data Facilities Company in a transaction valued at approximately $689m in cash and stock.
The companies said their combination will strengthen Equinix’s position in the global data centre services market by extending the companies presence to 16 new markets across North America.
Under the agreement, Equinix will integrate Switch and Data’s data centre business and operations, including the company’s 34 data centres in 22 markets in the US and Canada. The acquisition will allow Equinix to expand into new markets, including Atlanta, Denver, Miami, Seattle and Toronto, as well as provide a platform for future expansion of Switch and Data assets.
The companies said that the acquisition will add more than one million gross square feet of data centre capacity, bringing Equinix’s total global footprint to 79 data centres in 34 markets and more than six million square feet across the North American, European and Asia-Pacific markets.
The transaction will give Equinix customers broader access to local markets for their network edge deployments, and Switch and Data customers a comprehensive offering to their global data centre requirements, the companies said.
Steve Smith, president and CEO of Equinix, said: “The strategic acquisition of Switch and Data by Equinix further strengthens Equinix’s position as the most comprehensive global data center services provider across North America, Asia-Pacific and Europe. Our complementary business models, coupled with Switch and Data’s broad North American market coverage, provide a platform for strong growth as well as an opportunity to accommodate our customers’ demands for additional services.”
The acquisition is expected to close in the first quarter of 2010. However, the transaction is subject to customary closing conditions, including the approval of Switch and Data’s stockholders and regulatory approvals.
