US data centre company Equinix to buy Australian rival Metronode for $792 mn
18 Dec 2017
US data centre company Equinix Inc today struck a deal to buy Australian data centre firm Metronode from the Ontario Teachers' Pension Plan in an all-cash deal worth A$1.035 billion ($792 million).
The acquisition is expected to close in the first half of 2018, subject to some closing conditions including regulatory approval.
Metronode is a data center provider operating facilities throughout Australia, housing mission-critical internet and communications infrastructure for some of Australia's largest corporations, government agencies, telecommunications and IT service providers.
Metronode generated approximately A$60 million, or around $46 million, of revenues in the 12 months ending 30 September 2017.
Equinix-based in California said that the acquisition will further strengthen its leadership position in the Asia-Pacific region and support its ongoing global expansion.
The deal will expand Equinix' national footprint by adding 10 data centres, strengthening its position in Sydney and Melbourne, and adds a presence in Perth, Canberra, Adelaide, and Brisbane.
This will bring the company's total International Business Exchange data center footprint in Australia to 15 data centres.
Upon closing, the acquisition will bring the total Asia-Pacific coverage of Equinix to 40 data centres, and will extend its global footprint to 200 data centres in 52 markets.
"As well as expanding our national footprint with Metronode's existing sites, this acquisition also enables us to build out sites that are currently in development to further expand our presence in Australia,'' said, Jeremy Deutsch, managing director, Equinix Australia.
"With this acquisition, companies operating across Australia will have access to the largest network of highly interconnected data centers in the world. Metronode is excited to become part of an industry-leading company and further help our customers to build their digital infrastructure and drive competitive advantage in the digital age," said, David Yuile, CEO of Metronode.