Equinix Closes Acquisition Of Itconic
Transaction extends Platform Equinix™ into four new markets across Spain and Portugal.
Equinix, Inc. has announced that it has closed the transaction for the purchase of Itconic, a leading data center, connectivity, and cloud infrastructure solutions provider in Spain and Portugal, and Cloudmas, an Itconic subsidiary that is focused on supporting enterprise adoption and use of cloud services. Equinix purchased the companies in an all-cash transaction totaling €215M (approximately US$259M) from The Carlyle Group. The transaction includes five data centers in total in Madrid, Barcelona, Seville and Lisbon, expanding Platform Equinix™ into Iberia.
The agreement was signed on September 8, 2017 and the acquisition was completed on October 9, 2017.
"Equinix prides itself on running the world's most-connected data centers — bringing together market leaders and innovators on a single, global interconnection platform to accelerate business performance. The acquisition of Itconic further extends Equinix's ability to provide businesses with the direct and secure connectivity they need to undergo IT transformation and to expand their global reach now into Spain and Portugal," said Eric Schwartz, president, EMEA, Equinix.
The acquisition of Itconic further strengthens Equinix's position in Europe and will extend its footprint into two new countries within the region. The acquisition includes five data centers in four metros, with two located in Madrid, one in Barcelona, one in Seville, and one in Lisbon, and adds approximately 322,000 gross square feet to the Equinix International Business Exchange™ (IBX®) data center portfolio. Itconic generated approximately €55.5M or approximately US$66.8M of revenues for the period Q2 2017 annualized.
The Cloudmas business brings to Equinix a highly-experienced team of technology professionals with deep expertise in hybrid cloud architectures and cloud adoption and migration strategies. The acquisition adds more than 250 employees to the Equinix team in Europe. Many members of the Cloudmas team have earned certifications for deployment and support of services on leading cloud platforms.
With the current IT transformation underway, enterprises increasingly require low-latency network connectivity, access to cloud service providers in top global markets, and interconnection with customers and partners across their digital supply chain to run their corporate IT. Equinix's global data center footprint now enables businesses in Spain and Portugal to evolve from traditional businesses to "digital businesses" with the ability to globally interconnect with people, locations, cloud services and data. Additionally, customers will have the opportunity to operate on an expanded global platform to process, store and distribute larger volumes of latency-sensitive data and applications at the digital edge, closer to end-users and local markets.
Earlier this week Equinix also announced that it had acquired a new data center in Istanbul Turkey – IS2. With these transactions Equinix now operates more than 185 IBX data centers in 48 markets, providing customers even more ways to connect with other businesses around the world on Platform Equinix™.
Bank Street served as Equinix's financial advisor, and Uria Menendez acted as Equinix's external legal advisors in connection with this transaction.