Summary
Equinix Inc. (EQIX) announced a significant strategic move through a joint venture with GIC, Singapore's sovereign wealth fund, to form a venture valued at over $1 billion. This joint venture will focus on acquiring and operating up to six data centers located across key European markets: Amsterdam, Frankfurt (two), London (two), and Paris. Equinix will retain a 20% stake in the venture, with GIC holding the remaining 80%. The company will continue to manage and operate these facilities, providing essential services such as sales, marketing, development, and facilities management. This transaction is expected to provide Equinix with significant capital while allowing it to maintain operational control and service revenue streams from these European assets. The joint venture has secured substantial financing commitments, including secured credit facilities totaling €850 million, to support the acquisition and development of these hyperscale data centers. While the transaction is subject to customary closing conditions, it represents a strategic approach to capital recycling and growth in a key international market.
Key Highlights
- 1Equinix is forming a joint venture with GIC (Singapore's sovereign wealth fund) to acquire and operate up to six European data centers.
- 2The joint venture is valued at over $1 billion, with Equinix retaining a 20% ownership stake and GIC holding 80%.
- 3The six initial data centers are located in Amsterdam, Frankfurt (two), London (two), and Paris.
- 4Equinix will continue to manage and operate the data centers, providing services like sales, marketing, development, and facilities management.
- 5The joint venture has secured €850 million in secured credit facilities for acquisitions and development.
- 6The transaction is expected to reduce Equinix's 2019 revenue and adjusted EBITDA guidance by approximately $15 million or less.
- 7Closing of the joint venture is subject to financing, reorganization, and regulatory approvals.