The leading interconnection and data center company, Equinix, made an announcement to acquire Infomart Dallas, for $800 million.
The Infomart, one of the largest interconnection hub in the US, currently houses four of Equinix’s International Business Exchange (IBX) datacenters (DA1, DA2, DA3 and DA6). The company has total eight IBX datacenters in Dallas, which support around 3500 built out cabinets.
The transaction, expected to be closed by mid-2018, includes Infomart’s operations and tenants. As part of the transaction, around 50 of Infomart employees, mostly from operations section, will become employees of Equinix.
“Equinix will increase the number of its owned assets by four, increasing recurring revenue from owned assets to more than 45 percent.”
The 1.6 million gross-square-foot Infomart building generated a revenue of around $50 million in 2017. The eight Equinix IBX datacenters in Dallas house around 100 network service providers, which make Equinix the largest data center provider in Dallas metro area.
The acquisition will help Equinix to expand its global platform, especially in the Dallas market, for future development. It will also enable Equinix to help other companies shift their business from traditional model to a digital one, and interconnect with people, locations, cloud services and data worldwide.
“As Dallas becomes an increasingly strategic North American interconnection hub for businesses making the shift to digital, the acquisition of the Infomart will enable existing and new customers to scale their operations with Equinix,” said Karl Strohmeyer, President, Americas, Equinix. “This includes a rich portfolio of interconnection options, including on-demand connections to partners and infrastructure in any Equinix location globally through the new capabilities of Equinix Cloud Exchange Fabric.”
This is Equinix’s first acquisition in 2018, which follows the acquisition of Australian datacenter business Metronode in December last year.
In the same month, Equinix expanded its global platform through virtual and physical connection between its IBX datacenters worldwide. This enabled customers to connect to other Equinix customers from other Equinix locations.