8-KRegulation FDOther EventsExhibits & Filings

EQUINIX INC 8-K Report, Regulation FD Disclosure (Apr 21, 2020)

Filed April 21, 2020For Securities:EQIX

Summary

Equinix Inc. (EQIX) announced a significant strategic move on April 20, 2020, by entering into a joint venture agreement with GIC, Singapore's sovereign wealth fund. This collaboration is set to create a joint venture valued at over $1 billion, focused on developing and operating data centers in Japan. Initially, the venture will acquire three key sites located in Tokyo (two) and Osaka (one). Equinix will retain a 20% ownership stake, while GIC will hold the majority 80% interest. Equinix will play a crucial operational role, providing services such as sales and marketing, development management, facilities management, and overall coordination for the joint venture's data centers. The venture plans to secure external financing to fund the acquisition of the sites and their subsequent development, along with working capital needs. This partnership signifies Equinix's strategy to leverage third-party capital for growth in attractive markets while maintaining operational control and benefiting from the venture's expansion.

Key Highlights

  • 1Formation of a >$1 billion joint venture with GIC to develop and operate data centers in Japan.
  • 2Initial acquisition of three data center sites: two in Tokyo and one in Osaka.
  • 3Equinix will hold a 20% ownership interest, with GIC holding 80%.
  • 4Equinix will manage sales, marketing, development, and facilities operations for the joint venture's data centers.
  • 5The venture plans to secure external financing to fund site acquisition and development.
  • 6Closing of the joint venture is subject to customary conditions including financing, reorganization, and regulatory approvals.

Frequently Asked Questions

The primary purpose of this joint venture is to develop and operate data centers in Japan. It allows Equinix to expand its footprint in a key market by partnering with a significant capital provider, GIC.

Equinix will own a 20% stake in the joint venture and will be responsible for managing the development, operations, sales, and marketing of the data centers. GIC, Singapore's sovereign wealth fund, will hold the remaining 80% stake.

The joint venture will initially acquire three data center sites in Japan: two located in Tokyo and one in Osaka. There is also an opportunity to add more data centers to the venture post-closing.

The closing is contingent upon several conditions, including certain financing arrangements and funding obligations from both Equinix and GIC, completion of pre-closing reorganization steps, and obtaining necessary regulatory approvals.