Equinix to acquire AsiaTone assets for $230.5 million

Equinix to acquire AsiaTone assets for $230.5 million

Data centre provider Equinix has entered into an agreement to acquire five data centres, one disaster recovery centre and one data centre under construction from AsiaTone, in a $230.5 million cash deal.

The facilities are located across Hong Kong, Shanghai and Singapore and will significantly expand Equinix’s capacity across Asia-Pacific.

The Shanghai facility will provide Equinix with an additional 80,000 square feet of data centre space, and is expected to target its multi-national customers looking to expand into China. It is scheduled to be available to the company in the second half of 2012.

“The acquisition of AsiaTone will be an important milestone in establishing market leadership for Equinix in Asia-Pacific,” said Steve Smith, president and CEO of Equinix. “As our fastest growing region for several years and one in high demand by customers, we see tremendous opportunity for growth. We are especially pleased to expand our footprint in China, which is highly desirable for multi-national customers looking to expand into this high-growth market.”

Equinix’s drive in Asia-Pacific is supported by a report from Frost & Sullivan which projects that the data centre market in the region will grow to $9.25 billion in 2017 from $2.55 billion in 2010.

As a result of the acquisition, Equinix’s global footprint will expand to 104 data centres in 38 markets.

The transaction is expected to close in Q3 2012.