Equinix buys Metronode for A$1bn
19 December 2017 | James Pearce
Equinix has announced a deal worth more than A$1 billion (US$792million) to acquire Australian data centre firm Metronode.
The acquisition will expand Equinix’s global footprint by adding 10 data centres across Australia, bringing Equinix’s total number of International Business Exchange centres in Australia to 15 facilities overall.
It will see Equinix add two data centres in Melbourne, three in greater Sydney, two in Perth, and one in Canberra, Adelaide and Brisbane, totalling around 20,000 square metre of extra colocation space to its Australian footprint.
The deal also means Equinix will own Metronode’s Perth site, which will house the landing station for the new Vocus Australia Singapore Cable, giving the firm more access to international connectivity services.
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."
Jeremy Deutsche, who is managing director of Equinix’s Australian division, said the deal would also allow the company to build out sites in Australia that are currently in development.
He added: “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."
According to the Global Interconnection Index, interconnection is becoming an essential building block of the digital economy. In Asia-Pacific, the interconnection bandwidth of the government and education sector is expected to see a compound annual growth rate (CAGR) of 69% from 2016 to 2020. Equinix said the acquisition creates an opportunity to expand on Metronode's relationships with government agencies across the Australian market, including supporting the New South Wales Government with the provision of capacity in two data centres for the GovDC program.
Metronode adds more than 80,000 square meters of land, 90 percent of which is owned, to the global portfolio of Equinix. The deal is expected to close in the first half of 2018, subject to regulatory approval.
David Yuile, CEO, Metronode, said: "With this acquisition, companies operating across Australia will have access to the largest network of highly interconnected data centres 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."
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