Equinix Buys 13 Bell Data Center Sites for $750M
June 1, 2020
has entered into a definitive agreement to
purchase a portfolio of 13 data centers
across Canada from BCE Inc. ("Bell") for
US$750 million (CA$1,041 million) in an
all-cash transaction. The 13 data center
sites, which represent 25 Bell data center
facilities1, are expected to generate
approximately US$105 million (CA$150
million) annualized revenue (Q4'20E LQA),
which represents a purchase multiple of
approximately 15x EV / adjusted EBITDA. The
acquisition is expected to close in 2H 2020,
subject to customary closing conditions
including regulatory approval, and it is
expected to be immediately accretive to
Equinix's adjusted funds from operations (AFFO)
per share upon close, excluding integration
Charles Meyers, President and CEO, Equinix said, "Canadian businesses are in the midst of a significant transformation as they evolve their operations to be increasingly digital and cloud-enabled. With a platform that enables companies to increase the scale, reach and connectivity of their growing digital businesses, Equinix provides a compelling vision for businesses to rapidly and broadly interconnect with the people, locations, cloud services and data that matter most to their business. This expansion is a significant win for Canadian businesses, as well as for multinational companies that can leverage Platform Equinix to increase their digital presence in Canada by interconnecting to a rich ecosystem of customers, business partners and other strategic companies in Canada."
Jon Lin, President, Americas, Equinix: added, "The acquisition of these 13 strategic assets further extends the depth and breadth of Equinix's global platform, which currently spans 26 countries and 55 metros. It will position Equinix as a market leader for data center and interconnection services in Canada, with high-quality assets from coast to coast and a large, diversified ecosystem of Canadian businesses. Additionally, it opens key gateways for North America to Asia through Vancouver and North America to Europe through the submarine cable systems in the Millidgeville area."
Tom Little, President, Bell Business Markets: concluded, "Our partnership with Equinix will further accelerate digital transformation opportunities for Canadian enterprise customers, combining access to Equinix's interconnected global data centre platform with Bell's advanced broadband network connections, wide range of cloud solutions and experienced professional services team."
Highlights / Key Facts
The 13 data centers, six of which are owned assets, will add approximately 1.2 million gross square feet of data center space and 400,000 square feet of colocation space to Platform Equinix. The facilities will also provide a platform for future expansion in Canada.
More than 600 Bell customers currently operating within the 13 data centers will become Equinix customers, with more than 500 of these representing net new customers. The acquired customers comprise a diversity of sectors and segments, including enterprise, cloud and IT, government and financial services.
The strategic partnership between Equinix and Bell plans to deliver integrated networking and hybrid multicloud services, both directly and through the combined partner ecosystems of the two companies. The joint offering will combine Bell's telecommunications services and technology expertise with Equinix's global platform of interconnected data centers and business ecosystems.
Over time, Equinix plans to introduce Equinix Cloud Exchange Fabric™ (ECX Fabric™) to all 13 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.
The acquisition of the 13 Bell data centers will further extend Equinix's ability to provide businesses with the direct and secure connectivity they need to expand their global reach in new and existing markets. According to Volume 3 of the Global Interconnection Index, interconnection is becoming an essential building block of the digital economy. By providing additional interconnection capacity in these key markets, Equinix continues to play an important role in helping companies extend their IT operations to the digital edge through the interconnection of people, locations, clouds and data.
Citi and J.P. Morgan acted as financial advisors to Equinix.