Switch, Inc. (NYSE: SWCH) a company that bills itself as an “exascale technology infrastructure corporation,” yesterday announced that it has entered an agreement to acquire Data Foundry, Inc., a carrier-neutral co-location provider, for $420 million in an all-cash transaction. The acquisition is expected to close by mid-2021, subject to the satisfaction of customary closing conditions, including regulatory approval.
The acquisition of Data Foundry expands the Switch portfolio to 16 operational data centers across six locations and will anchor the company’s Fifth Prime data center campus. Switch said the deal will also add over 400 customer logos, offering robust cross-selling opportunities and the potential for significant customer expansion.
“We are extremely pleased to reach an agreement with Data Foundry and to announce the launch of our Fifth Prime Data Center Campus in Texas,” said Switch Founder and CEO Rob Roy. “The Data Foundry acquisition extends Switch’s national reach and enhances our ability to serve Texas and the Central U.S. region with low latency connectivity, while also providing critical geographic and revenue diversification with robust expansion potential to accelerate long-term growth and value creation.”
The Austin campus includes three current facilities with expansion capabilities up to 44 MW at full buildout. The Houston campus has one existing data center with the ability to support 18 MW of customer power at full buildout. Switch intends to commence development on new data centers in both Austin and Houston at the end of 2021, with the first sectors available for customer deployments in 2023.