Equinix, Inc., the global interconnection and data center company, today announced the completion of its acquisition of Metronode, a leading data center provider operating facilities throughout Australia.
The acquisition makes Equinix the market leader in Australia with 15 International Business ExchangeTM (IBX®) data centers nationwide. It expands the company’s operations in Sydney and Melbourne, and provides a presence in four new markets: Perth, Canberra, Adelaide and Brisbane.
Digital transformation could add as much as A$45 billion (approximately US$35 billion) to Australia’s gross domestic product (GDP) by 2021, according to new joint research from Microsoft and IDC1. The expanded Platform Equinix® will provide significant opportunities for Australian organizations to continue their digital transformation, and move their IT infrastructure, applications and services closer to the digital edge in proximity to global customers and partners.
The closure follows an agreement Equinix made with Ontario Teachers’ Pension Plan in December 2017 to acquire all the equity interests in Metronode group of companies in an all-cash transaction for A$1.035 billion, or approximately US$804 million.
Highlights/Key Facts
- The Metronode assets add more than 860,000 square feet (80,000 square meters) of land, 90 percent of which is owned, to the global portfolio of Equinix. These sites add approximately 215,000 square feet (20,000 square meters) of gross colocation space in Australia.
- The acquisition adds to Platform Equinix two data centers in Melbourne, and three in greater Sydney (including one in Illawarra), meeting customer demand for dual sites in each metro for redundancy and to host their data in network-rich, hyperscale ready facilities. It also adds two data centers to the Equinix portfolio in Perth, and one in each of Canberra, Adelaide, and Brisbane, enabling businesses in Australia to locate their data in multiple sites across the country.
- With Metronode’s strong existing customer base in government and proven track record of supporting both federal and state levels, Equinix is now well-positioned to serve both existing government agencies and new partners in this sector across Australia.
- Additionally, the Metronode site in Perth will become the landing station for the new Vocus Australia Singapore Cable. With the existing submarine cable deployments at Equinix in Sydney, Equinix becomes a leading provider of intercontinental connectivity, improving performance with lower latency and increased flexibility for customers across Australia.
- The acquisition furthers local growth momentum. Equinix recently completed the phase two expansion of its Sydney 4 IBX (SY4) and the phase three expansion of its Melbourne 1 IBX (ME1) is expected to be completed in Q3 2018.
- The Equinix footprint in the Asia-Pacific region now includes 40 data centers and extends the company’s global footprint to 200 data centers across 52 markets, enabling customers with increased capacity to enhance their IT infrastructure at the digital edge with Platform Equinix.
- About 60 employees will join the Equinix team in Asia-Pacific as part of the acquisition.
Quotes
Jabez Tan, Research Director, Structure Research said “Equinix is doubling down in priority markets and breaking into emerging markets in a meaningful way through this acquisition. Meeting customer demand for multi-site campus locations and submarine cable connectivity while also providing hyperscale cloud verticals, places Equinix in a leading position in the Australian market. With a high percentage of owned assets and increased speed to market through its operational footprint, Equinix has become the market leader in Australia and is well placed for further expansion while also being well-equipped to support the government.”
Samuel Lee, President of Equinix Asia-Pacific said “The acquisition of Metronode ensures Equinix will continue to strengthen its leadership position in the Asia-Pacific region and support our ongoing global expansion while further enabling Australia’s digital economy. Equinix is increasingly helping customers to digitally transform their businesses through deploying high-level interconnections taking their infrastructure, applications, and services closer to customers and partners.”
Jeremy Deutsch, Managing Director, Equinix Australia, said “Equinix is committed to matching the growth of our customers and meeting their demands for digital transformation and innovation. This acquisition expands our national footprint and will enable us to help our customers interconnect at the digital edge throughout Australia. We are thrilled to already see very strong demand from our existing customers and potential new customers, each expressing their desire to expand into the enlarged Platform Equinix across Australia.”
