Equinix closes $350m Itconic and Istanbul data centre deals
10 October 2017 | Jason McGee-Abe
Equinix has closed the all-cash purchase of Itconic and its CloudMas subsidiary for $259m and has acquired the Zenium data centre business in Istanbul for $93m.
After entering into an agreement with The Carlyle Group one month ago, the completed €215 million acquisition expands the global interconnection and data centre company’s Iberian footprint, with five data centre assets in Madrid (2), Barcelona (1), Seville (1) and Lisbon (1).
The acquisition of Itconic, a data centre, connectivity and cloud infrastructure solutions provider, further strengthens Equinix’s position in Europe and will extend its footprint into two new countries within the region.
Approximately 322,000 gross sq ft to the Equinix International Business Exchange (IBX) have been added to the data centre portfolio. It also extends Platform Equinix into four new markets across Spain and Portugal.
Cloudmas, an Itconic subsidiary which is focussed on supporting enterprise adoption and use of cloud services, brings to Equinix a highly-experienced team of technology professionals with deep expertise in hybrid cloud architectures and cloud adoption and migration strategies. The acquisition adds more than 250 employees to the Equinix team in Europe. Many members of the Cloudmas team have earned certifications for deployment and support of services on leading cloud platforms.
“Equinix prides itself on running the world's most-connected data centers — bringing together market leaders and innovators on a single, global interconnection platform to accelerate business performance,” said Eric Schwartz, EMEA president at Equinix.
“The acquisition of Itconic further extends Equinix’s ability to provide businesses with the direct and secure connectivity they need to undergo IT transformation and to expand their global reach now into Spain and Portugal.”
The Itconic agreement was signed on 8 September 2017 and the acquisition was completed on 9 October 2017.
Earlier this week Equinix also announced that it had acquired a Zenium state-of-the-art data centre in Istanbul, Turkey – IS2, from the existing shareholders in an all-cash transaction for $93 million. The facility, which presently generates approximately $2.5 million of annualised revenues, provides Equinix with additional capacity and interconnection in Turkey.
The acquisition was signed and completed on October 6, 2017.
The Zenium data centre, which will be renamed Equinix IS2, will further strengthen the Equinix position in Europe. As the largest metro in Turkey, Istanbul acts as a strategic gateway between Europe and Asia with critical economic and geopolitical importance. IS2 provides Equinix with key capacity and a growth path which enables the company to address growing demand for colocation and interconnection services in Turkey.
The purchase of the Zenium business includes a total of three buildings and land. The IS2 data centre building is partially fitted out; the two other buildings are shell and core and prepared for data centre fit out. IS2 provides Equinix with 1,500 sq m of colocation space today with the ability to increase this to 12,000 sq m and up to 22MW of critical customer load at full build—creating the ability for a future campus environment.
There are 10 networks, including Turk Telecom, already present at the new IS2 data centre, providing network choice to the many multinationals, hyperscalers and IT vendors who use Istanbul as a regional headquarters or a gateway to markets in Asia and the Middle East.
This connectivity is the foundation for cloud adoption, as enterprises continue to increase IT consumption of cloud-related services to accelerate business performance.
Istanbul is a key traffic route for submarine cables between Europe, Asia and Africa. These cable systems enable accelerated traffic globalisation and data consumption, as well as rapid growth of cloud and online services. They are increasingly important for industries that rely on low-latency connectivity, such as the online gaming and CDNs — many of which already use Istanbul as a regional hub today.
Schwartz said: "The dynamic evolution of digital technology is disrupting how business is done across all industries, forcing companies to invent new, information-centric business models. These business models rely on interconnection and distributed IT architecture. As the Turkish economy continues to grow, Istanbul will become an increasingly important hub for connectivity and technology infrastructure, and this new campus will help Equinix meet this demand from customers across our global customer base."
"We congratulate Equinix with this transaction, which enables us to focus on our business in Western Europe. The technological infrastructure in Turkey is advancing quickly, as businesses are requiring more interconnection to compete. This is a great opportunity and Equinix is now well positioned to drive this exciting data centre business forward,” added Franek Sodzawiczny, CEO & founder of Zenium.
With these transactions Equinix now operates more than 185 IBX data centres in 48 markets, providing customers even more ways to connect with other businesses around the world on Platform Equinix.