Equinix, the global interconnection and data center company announced that it is acquiring all of the equity interests in the Metronode group of companies for A$1.035 billion (US$792 million). The transaction is expected to close in H1 2018, subject to some closing conditions including regulatory approval.
Metronode is a leading Australian data center business, fully owned by Ontario Teachers’ Pension Plan that houses mission-critical internet and communications infrastructure for some of Australia’s largest corporations, government agencies, telecommunications and IT service providers.
David Yuile, CEO, Metronode, said: “With this acquisition, companies operating across Australia will 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.”
Samuel Lee, President of Equinix Asia-Pacific, said: “Growth and expansion is a continued focus for Equinix as we strive to bring together market leaders and innovators on a single, global interconnection platform. The acquisition of Metronode helps Equinix to 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.”
Metronode generated approximately A$60 million (US$46 million) of revenues in the 12 months ending September 30, 2017, with a margin profile accretive to the Equinix Asia-Pacific business. The acquisition agreement was signed on December 15, 2017
Jeremy Deutsch, Managing Director, Equinix Australia, commented: “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 Equinix family.”
With the acquisition of Metronode, Equinix will add 10 data centers in Australia and four new metros (Perth, Canberra, Adelaide, and Brisbane), hence expanding its position in the APAC region. Equinix’s data center footprint in Australia now totals 15 data centers.
The Australian market is naturally attractive for Equinix as its robust economy as maintained an average GDP growth rate of 3.3% in the last 26 years, the highest among developed countries. Australia is increasingly shifting to digital business models, with digitally enabled innovations to contribute between A$140–A$250 billion (US$107–US$191 billion) to the country’s by 2025.
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 acquisition will bring the total Asia-Pacific coverage of Equinix to 40 data centers, and will extend its global footprint to 200 data centers in 52 markets.
The acquired Metronode sites add approximately 20,000 square meters of gross colocation space to the Equinix footprint, and over 80,000 square meters of land, 90 percent of which is owned, to the global portfolio of Equinix.