Equinix (NASDAQ: EQIX), based in Redwood City, CA, has acquired West African data center and connectivity solutions provider, MainOne, for $320 million. MainOne currently generates approximately $60 million annualized revenue. The purchase price represents a multiple of approximately 14x EBITDA.
Equinix is one of the largest data center companies in the world. Globally, the company’s Platform Equinix comprises 240 data centers across 66 metros and 27 countries on six continents. Equinix provides data center and interconnection services to over 10,000 companies including over half of the Fortune 500. At year-end 2021, the company reported total revenues of $6.6 billion, up 11 percent year-over-year and provided 2022 revenue guidance of $7.2 billion.
The MainOne deal marks the latest in a series of strategic acquisitions in international markets for Equinix. In March, the company announced a planned expansion into Chile and Peru with an offer to acquire four data centers from Empresa Nacional De Telecomunicaciones S.A. (ENTEL), the leading Chilean telecommunications provider, for approximately $705 million or about 23x EBITDA. The transaction includes three data centers in Chile and potentially, a fourth in Peru, pending finalization of a definitive agreement. Equinix’s expansions in South America are intended to accelerate digital transformation opportunities for local businesses and multinational companies in the region.
The deals in Africa and South America follow the acquisition of 13 Bell data centers in Canada in October 2020, and two highly interconnected data centers in Mumbai through the acquisition of GPX India in September 2021.
The completion of the MainOne acquisition augments Equinix’s long-term strategy to become a leading carrier-neutral digital infrastructure company in Africa, delivering digital transformative technologies and connectivity to Nigeria, Ghana, and Côte d’Ivoire.
This acquisition will extend the company’s Platform Equinix into West Africa, giving organizations based inside and outside of Africa access to global and regional markets. MainOne is headquartered in Lagos, Nigeria and is rapidly becoming a key connectivity hub for the wider West Africa region.
Founded in 2010, the company enables connectivity for the Nigerian business community. Nigeria has both the largest population and the largest economy of any country in Africa, with approximately 142 million active internet subscribers and growing demand in fintech services, and content and digital media. MainOne has three operational data centers today with the fourth facility in Lagos expected to open by the end of April.
Once completed, MainOne’s four operational data centers will add more than 64,000 gross square feet of space to Platform Equinix, in addition to 570,000 square feet of land for future expansions. These data centers serve more than 800 business-to-business customers including major international technology enterprises, social media companies, global telecommunications operators, financial service companies and cloud service providers. Moreover, these data centers enable low latency access to key global networks including Amazon, Microsoft, Apple, Google, and Facebook.
Connectivity to Europe is through an extensive submarine network extending 7,000 kilometers from Portugal to Lagos, Accra and along the West African coast, with landing stations in Nigeria, Ghana, and Côte d’Ivoire. A terrestrial fiber network spans more than 1,200 kilometers across Lagos, and Edo and Ogun States, extending connectivity to 65 points of presence in cities across Portugal, Nigeria, Ghana, and Côte d’Ivoire.
MainOne will operate under a new brand “MainOne, an Equinix company” and the established executive team will continue to run the organization.
By John Celentano, Inside Towers Business Editor
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