Verizon said it plans to sell 24 data center locations across the U.S. and Latin America to Equinix for $3.6 billion, which will include 250 Verizon employees.
Verizon Communications has moved on plans to unload some of its data centers, announcing plans to sell 24 locations to Equinix for $3.6 billion.
The deal, which is expected to close in mid-2017, calls for Equinix to own and manage the “customer-facing data sites,” which include 29 data center buildings across 15 metro locations in the U.S. and Latin America. Verizon said the agreement will not impact its managed hosting and cloud offerings and that it will maintain 27 data centers across Europe, Asia Pacific and Canada. Equinix will assume 250 current Verizon employees as part of the deal.
Equinix, which is in the interconnection and data center space, said the deal will strengthen its global platform by increasing interconnection in the U.S. and Latin America; open new markets; and accelerate its penetration of the enterprise and strategic market sectors, including government and energy.
The data centers include approximately 900 customers, with Equinix noting a “significant number” being new enterprise customers to its platform. The company said the acquisition will bring its total global footprint to 175 data centers in 43 markets and approximately 17 million gross square feet across the Americas, Europe and Asia-Pacific markets.
“This unique opportunity complements and extends Equinix’s strategy to expand our global platform,” said Equinix President and CEO Steve Smith, in a statement. “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.”
Verizon has been reportedly looking to unload its data center operations, with rumors earlier this year stating the telecom operator was looking to pocket more than $2.5 billion for all 48 of its locations. The assets included those acquired as part of its $1.4 billion purchase of Terremark Worldwide in 2011, which it said at the time would bolster its cloud service operations.
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