Equinix Completes Acquisition of Paris Data Center from Digital Realty
New Paris asset provides ability to add capacity to meet customer demand in key European market
REDWOOD CITY, Calif. and PARIS, Aug. 1, 2016 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the global interconnection and data center company, today announced that it has completed the purchase of Digital Realty's operating business in St. Denis, Paris, including its real estate and data center facility, for EUR €189,750,000 (approximately USD $211 million). The site currently houses Equinix's PA2 and PA3 International Business Exchange™ (IBX®) data centers and the transaction furthers Equinix's corporate strategy of acquiring assets to invest behind customers and business ecosystems in key operating markets.
Highlights / Key Facts
- Purchasing St. Denis adds approximately 1,000 cabinets of sold capacity to the 5,000 cabinets Equinix has already sold in PA2 and PA3, plus expansion space for a further 1,000 cabinets in the existing buildings to support customer growth. The acquired facility is a dense interconnection site housing a core node of the Equinix Internet Exchange, one of the leading traffic exchanges in France.
- Today, Equinix's seven Paris data centers are business hubs for more than 575 companies. With the current IT transformation underway, global enterprises increasingly leverage Platform Equinix™ for low-latency network connectivity, private access to a menu of cloud service providers and interconnection with customers and partners across their digital supply chain to run their corporate IT.
- Equinix's Paris data centers provide significant carrier and cloud density, making them ideal sites to optimize network performance and deploy hybrid cloud architectures. Equinix's global interconnection platform provides access to over 160 network service providers and more than 100 cloud service providers in Paris for maximum connectivity to leading business services including Google Cloud Platform and IBM SoftLayer via Equinix Cloud Exchange.
- The acquisition of the new Paris site enhances Equinix's recently expanded data center portfolio in EMEA. In January 2016 Equinix acquired TelecityGroup plc, which added 34 new data centers and seven new markets to the company's offering in the region including Dublin, Helsinki, Istanbul, Manchester, Sofia, Stockholm and Warsaw. Equinix now operates 146 IBX data centers in 40 markets, providing customers even more ways to connect with other businesses around the world on Platform Equinix.
Steve Smith, president and CEO, Equinix:
"As one of the largest economies in Europe, France continues to be a strong destination for local French businesses, as well as multinationals. We believe that by fully owning the site of our PA2 and PA3 facilities and the surrounding land, we will be able to ensure additional capacity and the ability to interconnect more networks, clouds, people and data, as customers require in the future."
- Equinix Solidifies EMEA Data Center Portfolio [press release]
- Equinix Expands Data Center Leadership Position with Close of Telecity Acquisition [press release]
- The Successful Cloud-Enabled Enterprise [infopaper]
Equinix, Inc. (Nasdaq: EQIX) connects the world's leading businesses to their customers, employees and partners inside the most interconnected data centers. In 40 markets across five continents, Equinix is where companies come together to realize new opportunities and accelerate their business, IT and cloud strategies. www.equinix.com.
Forward Looking Statements
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual results to differ materially from expectations discussed in such forward-looking statements, including statements related to the purchase of land and business assets from Digital Realty in Paris. Factors that might cause such differences include, but are not limited to, unanticipated costs or difficulties relating to the integration of companies or assets we have acquired or will acquire into Equinix, including the Paris assets; the challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; a failure to receive significant revenue from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; and other risks described from time to time in Equinix's filings with the Securities and Exchange Commission. In particular, see Equinix's recent quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
Equinix and IBX are registered trademarks of Equinix, Inc.
International Business Exchange is a trademark of Equinix, Inc.
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SOURCE Equinix, Inc.
Released August 1, 2016