Equinix Completes Acquisition of Infomart Dallas
The acquisition of the
The agreement was signed on
Infomartbuilding generated approximately $50 millionof revenues in 2017. Of that revenue, approximately $20 millionwas attributed to rent and maintenance recoveries from Equinix. Equinixexpects this transaction to be adjusted funds from operations (AFFO) per share breakeven one year from closing. Additionally, there is a sizable AFFO upside from the future development of the acquired land parcel that is adjacent to the Infomart Dallas building.
- The acquisition of this landmark facility and tenants will further strengthen the
Equinixglobal platform. The Infomartis one of the largest interconnection hubs in the U.S. and is currently home to four of eight Equinix Dallas International Business Exchange™ (IBX®) data centers (DA1, DA2, DA3 and DA6). These data centers combined support approximately 3,500 built out cabinets and house more than 100 network service providers—more than any other data center provider in the Dallasmetro area. 451 Research2017 " Dallas: Multi-Tenant Datacenter Market" report forecasts an 11% compound annual growth rate for data center capacity added to the Dallasmarket from 2013 through 2019. According to the report, market growth is fueled by "a strong demand driven by a steady increase of enterprises across multiple verticals locating their regional or national headquarters in the area. Additionally, the market continues to see interest from enterprises headquartered in major coastal markets, as they look to select a central location with high connectivity and low cost of operations for data-supporting operations across the US."1 Dallasis a major interconnection point for LATAM traffic with key terrestrial routes serving Central and South America. In combination with our operations in Miami, Los Angeles, Bogotá, Sao Paulo, and Rio de Janeiro, Equinixcontinues to expand our solutions for enterprise, cloud and content providers looking to address the Latin America Market. According to the 2017 Interconnection Index Report published by Equinix, LATAM is expected to be the fastest-growing region in terms of Interconnection Bandwidth through 2020 as customers embrace an Interconnection Oriented Architecture approach.
- As part of the deal, 28
Infomartemployees, primarily in the operations functions of the acquired facility, have become Equinixemployees or contractors.
Stefanie Williams, Associate Analyst, Multi-Tenant Datacenters, 451 Research:
Equinixfortifies and expands its market positon with the acquisition of the Infomart Dallas. This strategic move positions the colocation and interconnection leader as the single largest data center provider in one of the largest enterprise and colocation markets in the Americas. With its existing service offerings and market innovations, Equinixcontinues to enable its customers to extend their reach, and drive digital platforms that disrupt multi-cloud business models. The acquisition validates the company's strategy and ongoing investments based on strong demand, which is expected to continue." Karl Strohmeyer, President, Americas, Equinix:
Dallasmetro region has long been a major internet and network peering exchange point and is a major communications hub for the southern United States. The addition of the Infomartto the Equinixportfolio supports our ongoing global expansion while further enabling the US digital economy."
- Infomart Deal Completed, New Opportunities Ahead [Equinix Blog]
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 and the expected benefits from 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 possibility that the anticipated benefits from the acquisition of the Dallas Infomart will not 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
1 451 Research Market Forecast: Dallas Multi-Tenant Datacenter Market-
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