Equinix strikes $1.04bn deal to acquire Metronode

All-cash acquisition expected to be completed in first half of next year

Equinix will spend $1.035 billion to acquire Metronode, the data centre operator announced today.

The all-cash transaction will see Equinix significantly boost its geographic spread in Australia. Currently, the company operates four Sydney data centres (SY4, the newest, began operating last year) and one Melbourne facility.

The Metronode acquisition will add 10 data centres to Equinix’s Australian portfolio. In addition to Sydney and Melbourne, Metronode has sites in the Illawarra, Brisbane, Canberra, Adelaide and Perth.

Earlier this year Metronode revealed details of a $150 million infrastructure plan, which included expanding its Sydney, Wollongong and Melbourne facilities.

Metronode owns and operates the Silverwater and Unanderra data centres for the New South Wales government’s GovDC project.

(In 2016, Vocus acquired Nextgen Networks as well as the North West Cable System and Australia Singapore Cable projects from Nextgen Group, leaving Metronode as the group’s sole asset.)

Equinix said it had struck an agreement with Ontario Teachers’ Pension Plan, the owner of Metronode. The acquisition is expended to close in the first half of 2018 subject to closing conditions including regulatory approval.

“With this acquisition, companies operating across Australia will have access to the largest network of highly interconnected data centres in the world,” Metronode CEO David Yuile said in a statement.

“Metronode is excited to become part of an industry-leading company and further help our customers to build their digital infrastructure and drive competitive advantage in the digital age.”

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“As well as expanding our national footprint with Metronode’s existing sites, this acquisition also enables us to build out sites that are currently in development to further expand our presence in Australia,” Equinix Australia managing director Jeremy Deutsch said.

“This will enable us to continue to deliver the level of excellence and interconnection that our customers expect, and signifies our commitment to the region in supporting the growth of digital businesses. We look forward to welcoming the Metronode team into the Equinix family.”

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