Equinix to buy MainOne for $320m
Equinix has announced plans to acquire MainOne for an enterprise value of $320 million.
The news, which marks Equinix's entry into Africa, will see Equinix gain a data centre and connectivity presence in Nigeria, Ghana and Côte d'Ivoire, the markets where MainOne operates.
"The acquisition of MainOne will represent a critical point of entry for Platform Equinix into the expansive and rapidly growing African market. MainOne's leading interconnection position and experienced management team represent critical assets in our aspirations to be the leading neutral provider of digital infrastructure in Africa," said Charles Meyers, president and CEO of Equinix.
"Growth of data consumption in Africa is amongst the fastest in the world, and our customers are looking for a trusted partner to pursue the opportunities presented by broad mobile adoption and greater connectivity across the region. MainOne's infrastructure, customer relationships, partner ecosystem and operating capability will extend the reach of Platform Equinix and bolster opportunities for customers in Africa and throughout the world."
Upon closing, MainOne's enterprise value of $320 million is expected to be accretive to Equinix's adjusted funds from operations (AFFO), excluding integration costs. MainOne's facilities generate approximately $60 million in annual revenue making its purchase price approximately 14x earnings before interest, taxes, depreciation, and amortization (EBITDA).
"Expansion in Africa has long been a strategic priority for us. With MainOne, we have found a company that not only has highly complementary data centre and connectivity assets, but can further accelerate the expansion of our business model and growth objectives," said Eugene Bergen, President of EMEA at Equinix:
"CEO Funke Opeke and her team have built a powerful and dynamic infrastructure that will enable international customers access to the continent and African organizations access to the global Equinix platform. Customers can take full advantage of Equinix's leading global interconnection services to connect with customers and partners, participate in rich digital ecosystems and expand their business across Africa and around the world."
Founded by CEO Funke Opeke (pictured) in 2010, MainOne's portfolio includes three data centres, with an additional facility under construction expected to open in Q1 2022. These facilities will add more than 64,000 sqft space to Platform Equinix, in addition to 570,000 sqft of land for future expansions.
In addition, MainOne owns and operates a 7,000km subsea network from Nigeria to Portugal, as well as 1,200km of reliable terrestrial fibre network in Lagos, Edo and Ogun States. As well as connectivity to terrestrial sites extends across 65 points of presence in cities across Portugal, Nigeria, Ghana and Cote d'Ivoire.
"Equinix will accelerate our long-term vision to grow digital infrastructure investments across Africa. I thank our founding shareholders led by Mr. Fola Adeola, MainStreet Technologies, AFC, PAIDF, FBN, Polaris and AfDB for investing in the MainOne vision to bridge the Digital Divide in Africa," said Opeke.
"With similar values and culture to what we have jointly built in twelve years, Equinix is the preferred partner for our growth journey. The MainOne team is excited about the partnership created through the acquisition, and we look forward to building our next chapter together."
Under the terms of the deal, the existing management team, including Opeke, will continue to serve in their respective roles. MainOne also has a workforce of approximately 500 employees.
The deal is due to close by Q1 of 2022, subject to customary closing conditions and regulatory approvals.