Divests assets in non-core markets; sharpens focus on developing
ecosystems in high-performing data centers
REDWOOD CITY, Calif.--(BUSINESS WIRE)--Sep. 4, 2012--
Inc. (Nasdaq: EQIX),
a provider of global data center services, today announced plans to sell
16 International Business Exchange™ (IBX®)
data centers located throughout the United States to an investment group
consisting of 365 Main, Crosslink Capital and Housatonic Partners in a
transaction valued at approximately $75 million. After the close of the
transaction, 365 Main will own and manage the 16 data centers, led by
industry veterans Chris Dolan, CEO, and Jamie McGrath, COO. The
transaction is expected to close in Q4 2012, subject to customary
“As we sharpen our focus on developing business ecosystems, we are
prioritizing the largest global markets required by our targeted
customers and applications that are driving growth across Platform
Equinix,” said Charles Meyers, president of the Americas for Equinix.
“We believe the divestiture of these assets will allow us to focus our
capital and energy on our most productive data centers and will ensure
that customers at these sites will be supported by an experienced data
center operator that will continue to invest in these locations. We are
excited to partner with 365 Main to make this transaction a success.”
“We have been continuously evaluating the data center market and believe
the opportunity to enter 16 U.S. markets creates a solid platform for
365 Main,” said Chris Dolan, president and founding partner, 365 Main.
“We are pleased to be back in this industry and to draw on our 15 years
of data center experience to deliver on our strong reputation for
customer service and retention.”
Nine of the 16 data centers are in markets Equinix will exit with the
close of the sale. Those markets include Buffalo, Cleveland, Detroit,
Indianapolis, Nashville, Phoenix, Pittsburg, St. Louis and Tampa. The
remaining seven data centers are in markets where Equinix will retain a
presence and currently has sufficient capacity to meet customer demand.
These sites include CH6 (427 La Salle, Chicago), DC9 (11513-19 Sunset
Hills Road, Reston, VA), DA5 (4101 Bryan St., Dallas), NY10 (65
Broadway, New York), PH2 (3701 Market St., Philadelphia), SE1 (1914
Third Ave., Seattle), and SV7 (534 Stockton Ave., San Jose).
The 16 sites represent approximately 280,000 total gross square feet of
data center space. The Equinix customers deployed in the 16 data centers
will be transferred to 365 Main as part of the transaction.
Additionally, key employees who have experience with these sites and
their customers will be joining 365 Main to facilitate a seamless
transition and ongoing support for customers.
Equinix estimates that the 16 data centers generate less than two
percent of the company’s annual revenues. With the announcement of this
transaction, the financial results derived from these 16 data centers
will be excluded from Equinix’s continuing operations for the quarter
and will be reflected as discontinued operations. As a result, Equinix
will retroactively adjust its financial results for all applicable prior
periods beginning April 30, 2010, the date the company acquired these
assets, to reflect them as discontinued operations as required under
accounting principles generally accepted in the United States of America.
For this transaction Davis Polk & Wardwell LLP and The Bank Street Group
LLC served as legal and financial advisors to Equinix.
About 365 Main
365 Main was founded in 2002 by industry leaders Chris Dolan and James
McGrath. 365 Main began with a single data center based in San
Francisco, CA, eventually operating five facilities nationwide. The data
centers were developed and certified to the highest industry standards
and compliance requirements, including SAS70, and feature 24/7/365
power, cooling, connectivity and security capabilities to ensure
mission-critical operations and business continuity. Building itself
from a “retail” model at its San Francisco facility into the industry
leader of mid-market/ multi-tenant wholesale data centers proved to be
the success for 365 Main that resulted in the sale of five of its
facilities to Digital Reality Trust in 2010. 365 Main built up a
portfolio of six data center assets with 39 megawatts of power under
management across the United States. The company earned its reputation
for high-touch customer service, satisfaction and retention. With its
years of experience in modern data center operations, 365 Main has
proven to be capable of managing customers with broad requirements. 365
Main is a privately held company based in San Francisco, Calif. More
information is available at 877-365-MAIN (6246) or www.365main.com.
For more information about Crosslink Capital visit www.crosslinkcapital.com
and Housatonic Partners visit www.housatonicpartners.com.
Equinix, Inc. (Nasdaq: EQIX) connects businesses with partners and
customers around the world through a global platform of high performance
data centers, containing dynamic ecosystems and the broadest choice of
networks. Platform Equinix connects more than 4,000 enterprises, cloud,
digital content and financial companies including more than 900 network
service providers to help them grow their businesses, improve
application performance and protect their vital digital assets. Equinix
operates in 38 strategic markets across the Americas, EMEA and
Asia-Pacific and continually invests in expanding its platform to power
customer growth. http://www.equinix.com.
Forward Looking Statements
This press release contains forward-looking statements that involve
risks and uncertainties. Actual results may differ materially from
expectations discussed in such forward-looking statements. Factors that
might cause such differences include, but are not limited to, the
failure to complete the contemplated divestiture of the non-core IBX
assets, the challenges of acquiring, operating and constructing IBX
centers and developing, deploying and delivering Equinix services;
unanticipated costs or difficulties relating to the integration of
companies we have acquired or will acquire into Equinix; a failure to
receive significant revenue from customers in recently built out or
acquired data centers; failure to complete any financing arrangements
contemplated from time to time; competition from existing and new
competitors; the ability to generate sufficient cash flow or otherwise
obtain funds to repay new or outstanding indebtedness; the loss or
decline in business from our key customers; and other risks described
from time to time in Equinix’s filings with the Securities and Exchange
Commission. In particular, see Equinix’s recent quarterly and annual
reports filed with the Securities and Exchange Commission, copies of
which are available upon request from Equinix. Equinix does not assume
any obligation to update the forward-looking information contained in
this press release.
Equinix and IBX are registered trademarks of Equinix, Inc.
International Business Exchange is a trademark of Equinix, Inc.
Source: Equinix, Inc.
Equinix Media Contacts
for Equinix, Inc.
Liam Rose, +1 415-318-4380
Katrina Rymill, +1 650-598-6583
Starr, +1 650-598-6020