Summary
Equinix, Inc. (EQIX) has announced a significant strategic acquisition of Verizon Communications Inc.'s colocation data center business. This transaction involves the purchase of 24 data center sites (29 buildings) across the United States, Brazil, and Colombia for a cash consideration of $3.6 billion, subject to adjustments. The deal is expected to be funded through a combination of existing cash reserves and new debt and equity financings, with a $2.0 billion senior unsecured bridge facility committed by JPMorgan Chase Bank, Bank of America, and Merrill Lynch. This acquisition is a major expansion for Equinix, significantly increasing its global footprint and service offerings. The integration of Verizon's data centers is poised to enhance Equinix's market position and provide greater capacity for its existing and future customers. Investors should note that the transaction is subject to customary closing conditions, including regulatory approvals, and is anticipated to close by mid-2017. Equinix will also enter into colocation and lease agreements with Verizon post-acquisition.
Key Highlights
- 1Equinix to acquire Verizon's colocation data center business for $3.6 billion.
- 2Acquisition includes 24 data center sites (29 buildings) in the US, Brazil, and Colombia.
- 3Transaction expected to be funded by cash on hand, debt, and equity financings.
- 4Equinix has secured a $2.0 billion senior unsecured bridge facility for the transaction.
- 5The deal is subject to customary closing conditions and is anticipated to close by mid-2017.
- 6Verizon will become a colocation customer of Equinix post-acquisition through lease agreements.