Global data center and interconnection provider, Equinix, has entered into a definitive agreement to acquire the Infomart Dallas colocation data center, including its operations and tenants, from ASB Real Estate Investments, in an $800 million debt and cash transaction.
The Infomart is one of the largest interconnection hubs in the U.S. and is currently home to four of eight Equinix Dallas International Business Exchange (IBX) data centers (DA1, DA2, DA3 and DA6), which combined, support approximately 3,500 built out cabinets.
The 1.6 million gross-square-foot Infomart data center includes multiple diverse fiber entry points and provides significant expansion opportunities to Equinix through the existing underdeveloped capacity (approximately 11MW of power), as well as the potential to develop additional capacity (approximately 40MW of power) on land adjacent to the Infomart building.
The financial terms of the deal include cash consideration of $31 million combined with $750 million in senior unsecured notes issued to ASB Real Estate Investment at various maturities over 36 months after the closing date. The notes will be valued at approximately $769 million when adjusted to reflect the current trading value of Equinix currently outstanding bonds. ASB Real Estate Investments owns Infomart Data Centers on behalf of its Allegiance Real Estate Fund, a $7.4 billion core vehicle, which invests nationally in institutional-quality real estate. Equinix was advised
$50 Million of Revenues
Infomart Dallas currently has approximately 45 tenants, including networks, colocation providers, office tenants and Equinix. Today, Equinix is the largest tenant accounting for approximately 40 percent of the lease revenues from the facilities.
The Infomart building generated approximately $50 million of revenues in 2017, of which approximately $20 million was attributed to rent and maintenance recoveries from Equinix. The Equinix Dallas IBX data centers offer access to Equinix Cloud Exchange Fabric (ECX Fabric), an on-demand platform that enables Equinix customers to connect to any other customer across any Equinix location globally. ECX Fabric offers access to more than 1,000 of the world’s largest enterprises, cloud service providers (including Alibaba Cloud, AWS, Google Cloud Platform, IBM Cloud, Microsoft Azure and Oracle Cloud) and SaaS providers (including Salesforce, SAP and ServiceNow, among others).
“As Dallas becomes an increasingly strategic North American interconnection hub for businesses making the shift to digital, the acquisition of the Infomart will enable existing and new customers to scale their operations with Equinix,” said Karl Strohmeyer, President, Americas, Equinix. ‘This includes a rich portfolio of interconnection options, including on-demand connections to partners and infrastructure in any Equinix location globally through the new capabilities of Equinix Cloud Exchange Fabric.”