Equinix Completes US$780 Million Acquisition of 13 Bell Data Centers in Canada
Highlights / Key Facts
Equinix'sexpansion across Canadaunlocks opportunities for Canadian businesses expanding internationally and for multinational corporations pursuing growth and innovation in the Canadian market. Canadian companies can benefit from the ability to accelerate their evolution from traditional to digital businesses by rapidly scaling their infrastructure, easily adopting hybrid multicloud architectures and interconnecting with strategic business partners within the Platform Equinix® ecosystem of nearly 10,000 customers. Equinixnow operates 15 high-quality International Business Exchange™ (IBX®) data centers coast to coast in Canada. In addition to the two Torontofacilities (TR1 and TR2) that Equinixhas operated since 2010 and 2015 respectively, the company now operates four additional data centers in Toronto(TR4, TR5, TR6, TR7), three in Calgary(CL1, CL2, CL3), and one in each of the following metros: Kamloops(KA1), Montreal(MT1), Ottawa(OT1)3, Saint John(SJ1), Vancouver(VA1) and Winnipeg(WI1).
Equinixplans to introduce Equinix Cloud Exchange Fabric® (ECX Fabric®) in the new data centers. ECX Fabric is an on-demand, SDN-enabled interconnection service that allows any business to connect between its own distributed infrastructure and any other company's distributed infrastructure, including the world's largest network service and cloud providers, on Platform Equinix. Equinixand Bell have begun a strategic partnership that delivers industry-leading joint offers in Canadaand globally. This partnership will enable enterprises in Canadato leverage integrated networking and hybrid multicloud services, both directly and indirectly through the shared partner communities of Equinixand Bell, combining Bell's telecommunication services and technology expertise with Equinix'sglobal platform of interconnected data centers and business ecosystems. This partnership also allows Equinixto engage with Bell reseller partners to build stronger relationships with the Canadian channel ecosystem. Andrew Eppichhas more than 20 years of experience in B2B technology and helping businesses digitally transform. Prior to joining Equinix, he served for 13 years at HPE, Inc.in Canadain sales and channel leadership positions. While at Equinix, Eppich has led teams in Canadaand the Northeastern U.S., and he has most recently completed a two-year assignment in Europeleading teams in the United Kingdomand Germany.
- The 13 acquired data centers are expected to generate approximately
US$112 million(CA$150 million) annualized revenue (Q4'20E LQA), which represents a purchase multiple of approximately 15x EV / adjusted EBITDA. The acquisition will be immediately accretive to Equinix'sadjusted funds from operations (AFFO) per share, excluding integration costs. Equinix'sglobal platform currently includes more than 220 data centers across 63 metros.
- As a part of the transaction, more than 160 employees, primarily in the operations functions of the 13 acquired data centers, joined
- Citi and J.P. Morgan acted as financial advisors to
Jon Lin, President, Americas, Equinix:
"This acquisition complements and extends
Equinix'sstrategy of expanding our global platform and enhancing cloud and network density to offer enterprises a path to digital success. It also provides a unique opportunity for Equinixto expand its presence in the Americasand positions Equinixas a leading digital infrastructure provider in Canada. Further, it strengthens relationships with Canadian enterprises, many of which prefer local credentials and have multi-metro requirements, while enhancing relationships with global businesses looking to operate in the Canadian market." Jason Bremner, Research Vice President, IDC:
Canadais the third largest economy in the Americas, and the 10th largest in the world. It is also home to a thriving aggregation of multinational corporations that are seeking a clear and rapid migration path to digital transformation. We expect to see Canadian spending on digital transformation reach C$28 billionin 2020 with a growth rate of 7%, as companies look to accelerate their digital initiatives. This acquisition will offer both Canadian businesses and multinationals operating in Canadawith a strong new option for building out and managing their digital infrastructure at key edge metros within the country." Siobhan Cox, Vice President of Marketing, Bell:
"As the first Equinix Platinum Partner in
Canada, Bell is leveraging Equinix'sworld-class data centre operations and our leadership in network connectivity and cloud service innovation to enable the digital edge transformation of our customers' operations in Canadaand around the globe. Bell is excited to build on our joint momentum, which is already providing major benefits for a large Canadian investment services customer in our shared community through a migration of IT infrastructure to Equinixto facilitate a new Open Stack environment." Rick McCalla, Vice President, Infrastructure, Index Exchange:
"At Index Exchange, we process billions of transactions a day on our ad exchange, managing incredibly large amounts of data along the way. Unsurprisingly, our physical servers play the most critical of roles in creating a seamless, low-latency user experience for our partners. Having worked with
Equinixacross the globe to deliver on this experience, we could not be more proud to continue our relationship back where we started: Canada." Nancy McCuaig, Senior Vice President, Chief Technology and Data Officer, IGM Financial Inc.:
"IGM's partnership with
Equinixhas played an important role in our transformation journey and has provided us with a competitive edge. Our ability to stay connected to global markets through leveraging Platform Equinix has been critical to our success as a company. We're excited about Equinix'sacquisition of additional data centres, as it will allow us to enhance connectivity both within Canadaand across the globe, and result in a better overall client and user experience."
Equinixto Expand Canadian Operations with US$750 MillionAcquisition of 13 Bell Data Center Sites [press release]
- Worldwide Colocation and Interconnection Services 2019-2020 Vendor Assessment [IDC report]
Equinix'sSustainability Progress -- IT Provider Corporate Responsibility Profile [IDC report]
- Infrastructure Is Everywhere [Gartner report]
- Learn more about Platform Equinix [website]
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 Bell, the expected benefits from the acquisition, and the anticipated timing for closing of the
1 Note: includes the
2 This amount represents the foreign exchange spot rate as of
3 Note the
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