Equinix Agrees to Acquire ancotel; Significantly Increases Network Density in Europe

Agreement will increase Equinix capacity in Frankfurt and provide access to more than 400 networks for customers expanding into Europe

REDWOOD CITY, Calif. & FRANKFURT, Germany--(BUSINESS WIRE)-- Equinix, Inc. (Nasdaq:EQIX), a provider of global data center services, today announced it has entered into an agreement to acquire ancotel GmbH, a leading provider of carrier-neutral colocation and interconnection services in Europe. With the acquisition of ancotel, Equinix gains one data center in Frankfurt with 2,100 square meters of data center capacity and increases its European network density by adding more than 400 network customers, which includes 200 new networks and 6,000 cross connects.

The acquisition of ancotel, which is expected to close in Q3 2012, will also provide new opportunities for customers, creating a leading, network-dense colocation and connectivity campus in Frankfurt, one of the world’s busiest data hubs. The campus will offer a broad mix of networks from Western and Eastern Europe and beyond, and significant growth opportunities for customers looking to expand their data center footprint.

ancotel’s assets include edge nodes in Hong Kong, London and Miami, giving Equinix additional points of presence in these markets. In addition, ancotel customers will benefit from the global reach, high-quality data centers and thriving ecosystems of Platform Equinix™ as well as access to its Marketplace of more than 4,000 customers.

“The acquisition of ancotel significantly strengthens Equinix’s value proposition and capabilities both in Europe and globally,” said Eric Schwartz, president, Equinix EMEA. “Both companies enjoy strong reputations in the market and serve the world’s leading companies. The agreement will also grow the total number of network customers available at Equinix from 700 to 900.”

“For more than a decade, ancotel’s Kleyer90 has been a key point of interconnection for network service providers in Frankfurt and beyond,” said K.J. Orth, one of the two founders and managing director of ancotel. “The global reach of Platform Equinix bundled with services such as the Equinix Marketplace and the Equinix Ethernet Exchange will add great value for customers looking to expand in Europe and around the world.”

ancotel generated approximately $21.4 million in revenue in 2011, and has been growing at a greater than 20 percent CAGR for the past three years. The valuation paid is in-line with Equinix’s current 2012 adjusted EBITDA trading multiple based on projections for the business. The ancotel business will not affect Equinix’s global objective to be adjusted free cash flow positive in 2013.

About ancotel

ancotel GmbH is one of Europe’s leading network neutral interconnection companies headquartered in Frankfurt, Germany. ancotel provides scalable interconnection services and secure, reliable colocation services in its densely connected Kleyer90^® flagship facility. Founded in 1999, more than 400 companies from 60+ countries are currently using ancotel to expand their business and exchange data and voice traffic – efficiently and securely. All types of Carriers & Providers including incumbents, VOIP providers, broadband providers, content delivery networks, and web hosters use ancotel to improve their network performance and to lower their costs. ancotel operates 6,000 cross connects which customers use for voice and data interconnection (Ex. IP-Transit, Peering, TDM Voice and VOIP, VPN). In addition to classic physical cross-connections via fibreglass, coaxial and twisted pair copper cable, ancotel is increasingly focusing on virtual meet me room (vmmr) platforms and managed services.

About Equinix

Equinix, Inc. (Nasdaq:EQIX) connects businesses with partners and customers around the world through a global platform of high performance data centers, containing dynamic ecosystems and the broadest choice of networks. Platform Equinix connects more than 4,000 enterprises, cloud, digital content and financial companies including more than 700 network service providers to help them grow their businesses, improve application performance and protect their vital digital assets. Equinix operates in 38 strategic markets across the Americas, EMEA and Asia-Pacific and continually invests in expanding its platform to power customer growth. http://www.equinix.com.

Forward Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include risks and uncertainties associated with our acquisition of ancotel, including, but not limited to, the risks of international operations and the challenges of realizing expected synergies. We also face other general risks, including, but not limited to, the challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; 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.

Equinix Media Contacts
Melissa Neumann, +1-650-598-6098 (Global/US)
mneumann@equinix.com
or
GolinHarris
Liam Rose, +1-415-318-4380 (Global/US)
lrose@golinharris.com
or
Text 100
Camille Pomey, +44 (0)20 8846 0789 (EMEA)
londonequinix@text100.com
or
Equinix Investor Relations Contact
Katrina Rymill, +1-650-598-6583
krymill@equinix.com

Source: Equinix, Inc.

Released May 16, 2012