The acquisition of Metronode will further strengthen the leadership position of
Australia'srobust economy has seen 26 years of uninterrupted economic expansion, and has maintained an average GDP growth rate of 3.3 percent1, the highest rate among developed countries. Digitally enabled innovations are forecast to contribute between A$140–A$250 billion (approximately US$107–US$191 billion) to Australia'sGDP by 20252. The acquisition of Metronode will further extend Platform Equinix™, providing more businesses with the direct and secure connectivity they need as they increasingly shift to digital business models.
- The acquisition will complement the growth strategy of
Equinixin Australiaby adding two data centers in Melbourne, three in greater Sydney(including one in Illawarra), two in Perth, and one in each of Canberra, Adelaideand Brisbane. The acquired Metronode sites add approximately 20,000 square meters of gross colocation space to the Equinixfootprint.
- Metronode adds more than 80,000 square meters of land, 90 percent of which is owned, to the global portfolio of
Equinix. Several of the acquired assets provide Equinixwith the opportunity to build additional capacity and capture benefits of scale over time.
- The acquisition will also enable
Equinixto provide diverse second campus locations in its existing Sydneyand Melbournemetros, providing customers with network-rich redundant options in these markets. In addition, these new campuses are hyperscale ready, enabling Equinixto support requirements from high-growth global cloud service providers.
Perthsite on the west coast of Australiawill house the landing station for the new Vocus Australia Singapore Cable. When combined with the existing submarine cable deployments in Sydney, Equinixwill be positioned as a leading provider of access to intercontinental connectivity across the combined national footprint.
- According to the Global Interconnection Index, Interconnection is becoming an essential building block of the digital economy. In
Asia-Pacific, the Interconnection Bandwidth of the Government & Education sector is expected to see a compound annual growth rate (CAGR) of 69 percent from 2016 to 2020. The enhanced national footprint of Equinixin Australiacreates an opportunity to expand on Metronode's relationships with government agencies across the Australian market, including supporting the New South Wales Government with the provision of capacity in two data centers for the GovDC program.
- Upon close, the acquisition will bring the total
Asia-Pacificcoverage of Equinixto 40 data centers, and will extend its global footprint to 200 data centers in 52 markets, providing customers with even more ways to securely deploy, directly connect and effectively scale their digital infrastructure with Platform Equinix.
- J.P. Morgan served as the financial advisor of
Equinix, and Allen & Overy acted as the external legal advisor of Equinixin connection with this transaction. Ontario Teachers' Pension Planwas advised by UBSand RBC Capital Markets.
Samuel Lee, President of Equinix Asia-Pacific:
"Growth and expansion is a continued focus for
Equinixas we strive to bring together market leaders and innovators on a single, global interconnection platform. The acquisition of Metronode helps Equinixto accelerate the expansion of our global footprint and support our customers in the region as they move their infrastructure to the edge, closer to their customers and partners." Jeremy Deutsch, Managing Director, Equinix Australia:
"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. This will enable us to continue to deliver the level of excellence and interconnection that our customers expect, and signifies our commitment to the region in supporting the growth of digital businesses. We look forward to welcoming the Metronode team into the Equinixfamily." David Yuile, CEO, Metronode:
"With this acquisition, companies operating across
Australiawill 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."
- Equinix Expansion Continues in 2017 as Interconnection Demand Soars [blog]
- Equinix Extends the Digital Edge for Companies with Five New Data Centers and 14 Expansions Opening in 2017 [press release]
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 data centers from Metronode, 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 data centers from Metronode to be satisfied; the occurrence of any event, change or other circumstance that would compromise our ability to complete the acquisition of such data centers from Metronode 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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