Telecommunications Provider Verizon Sells Data Centers to Equinix

December 13, 2016
Telecommunications Provider Verizon Sells Data Centers to Equinix
Managed hosting and telecommunications provider Verizon is to sell some of its data centers to Equinix, Inc. (Equinix). Verizon, which has headquarters in New Jersey, United States, was established in 1983. The company is primarily a telecommunications provider, but also offers managed hosting and cloud services. It is selling 24 data centers in 15 metropolitan areas mainly in the United States alongside centers in Brazil and Colombia. The deal is reportedly costing Equinix in the region of $3.6 billion and is a “cash purchase” likely to be completed mid-2017.

Equinix, which has headquarters in Redwood City, California, United States, was established in 1998. A global presence with operations on five continents, the company prides itself on connecting “the world’s leading businesses to their customers, employees and partners” and offering “the most interconnected data centers”. The company facilitates its customers’ businesses, IT and cloud strategies. Its deal with Verizon is the result of the company moving away the data center business and efforts to refocus on core competencies and business areas.

“This unique opportunity complements and extends Equinix's strategy to expand our global platform,” explained Equinix’s CEO and President, Steve Smith. “It enables us to enhance cloud and network density to continue to attract enterprises, while expanding our presence in the Americas. The new assets will bring hundreds of new customers to Platform Equinix while establishing a presence in new markets and expanding our footprint in existing key metros. The deal will also provide significant value for shareholders as the proposed transaction is expected to be immediately accretive to our adjusted funds from operations per share upon close," he added.

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