The acquisition of this landmark facility and tenants will further strengthen the
The transaction is expected to close by mid-2018, subject to the satisfaction of customary closing conditions. As part of the deal, approximately 50
- The 1.6 million gross-square-foot
Infomartincludes multiple diverse fiber entry points, and provides significant expansion opportunities to Equinixthrough the existing underdeveloped capacity (approximately 11MW of power), as well as the potential to develop additional capacity (approximately 40MW of power) on land adjacent to the Infomartbuilding. It currently has approximately 45 tenants, including networks, colocation providers, office tenants and Equinix. Today, Equinixis the largest tenant accounting for approximately 40 percent of the lease revenues from the facilities.
Infomartbuilding generated approximately $50 millionof revenues in 2017, of which approximately $20 millionwas attributed to rent and maintenance recoveries from Equinix. Equinixexpects this transaction to be AFFO per share breakeven one year from closing. Additionally, there is sizable AFFO upside from the future development of the acquired land parcel that is adjacent to the Infomart Dallas building.
Dallasmetro represents one of the largest enterprise and colocation markets in the Americasand the eight Equinix IBX data centers house more than 100 network service providers—more than any other data center provider in the Dallasmetro area.
- The Equinix Dallas IBX data centers offer access to Equinix Cloud Exchange™ Fabric (ECX Fabric), an on-demand platform that enables
Equinixcustomers to discover and dynamically connect to any other customer across any Equinixlocation globally. Offered through an easy-to-use portal and a single connection to the Equinixplatform, ECX Fabric offers access to more than 1,000 of the world's largest enterprises, cloud service providers (including Alibaba Cloud, Amazon Web Services, Google Cloud Platform, IBM Cloud, Microsoft Azure and Oracle Cloud) and SaaS providers (including Salesforce, SAP and ServiceNow, among others). By reaching their entire digital ecosystem through a single private and secure connection, companies can rapidly scale their digital business operations globally. Customers can also locate their data close to the edge of their network, increasing performance by keeping data near consumption points.
- The financial terms of the deal include cash consideration of
$31 millioncombined with $750 millionin senior unsecured notes issued to ASB at various maturities over 36 months after the closing date. The notes will be valued at approximately $769 millionwhen adjusted to reflect the current trading value of Equinixcurrently outstanding bonds.
- ASB Real Estate Investments owns Infomart Data Centers on behalf of its
Allegiance Real Estate Fund, a $7.4 billioncore vehicle, which invests nationally in institutional-quality real estate. Equinixwas advised on the transaction by Citi, J.P. Morgan and Davis Polk & Wardwell LLP.
"As Dallas becomes an increasingly strategic North American interconnection hub for businesses making the shift to digital, the acquisition of the
Maverick Research-- The Edge Will Eat the Cloud [Gartner Report]
- Colocation-Based Interconnection Will Serve as the 'Glue' for Advanced Digital Business Applications [Gartner Report]
- The Platform Equinix Vision -- Build Here, and Go Anywhere [Equinix Paper]
- Equinix IBX Data Center Virtual Tour
- Equinix Expansion Overview
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual results to differ materially from expectations discussed in such forward-looking statements, including statements related to the acquisition of the Dallas Infomart from ASB, the expected benefits from the acquisition and the expected timing for closing the acquisition. When used in this document, the words "anticipates," "can," "will," "look forward to," "expected" and similar expressions, and any other statements that are not historical facts, are intended to identify those assertions as forward-looking statements. Factors that might cause such differences include, but are not limited to, the failure of one or more conditions to the acquisition of the Dallas Infomart from ASB to be satisfied; the occurrence of any event, change or other circumstance that would compromise our ability to complete the acquisition of the Dallas Infomart from ASB within the expected timeframe or at all; the possibility that the anticipated benefits from the proposed acquisition cannot be fully realized or may take longer to realize than expected; unanticipated costs or difficulties relating to the integration of data centers or companies we have acquired or will acquire into
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