We’re excited today to announce that we’ve completed our acquisition of TelecityGroup in a deal that extends Equinix’s interconnection platform into seven new markets and doubles our European capacity, making us by far the region’s largest data center company.
The deal valued at approximately $3.8 billion (£2.6 billion) also increases our global data center portfolio by more than 30%, from 111 to 145. That’s a major expansion of our leadership in the global data center market in a single transaction.
So the deal is a significant milestone for Equinix. But it’s also good news for our customers and companies seeking superior service in this interconnected era, when direct and secure connections between partners, customers and employees is critical to compete.
The acquisition adds substantial network and cloud density to our offerings, meaning we can better serve enterprises who are making interconnection central to their IT design – a decision that’s becoming more essential for the enterprise, and more common.
Our recent Enterprise of the Future survey indicated that the percentage of interconnected enterprises worldwide is set to more than double to 84% by the end of next year. The same survey found that more than 60% of businesses believed interconnection was “very important” to compete. The timing of a deal that greatly expands interconnection for our customers is not an accident.
The acquisition also expands our global reach at a time when the ability to collaborate with partners anytime and anywhere has perhaps never been more important. In the interconnected era, global enterprises require fast, simultaneous interconnection to service providers and partners in multiple markets in order to innovate, create value and deliver services to increasingly dispersed and mobile end users. Equinix’s interconnection platform already has the proven stability, reliability and scale needed to do this, and our customers are taking advantage of it.
Today, 54% of Equinix’s revenue comes from customers deployed globally across our three regions (Americas, APAC and EMEA), and over 83% of revenue is from customers deployed across multiple metros. The Telecity acquisition increases the number of metros to 40 worldwide, up from 33, and gives our customers even more opportunities for partnerships, interconnection and growth.
The new metro markets Equinix is entering with the Telecity acquisition include:
Today’s announcement comes eight months after our offer to Telecity in May and just days after Telecity shareholders approved the deal. The acquisition has also been approved by regulators in the United Kingdom and the European Commission.
Omar Altaji, Chief Commercial Officer at Hibernia Networks, says, “As a customer of both Equinix and Telecity, Hibernia Networks has relied on these data center colocation providers for mission-critical connectivity to a concentration of businesses in major hubs throughout EMEA, North America and the rest of the world. For that reason we are excited about the strategic value that a combined offering will provide as we look to expand into new markets on a more robust interconnection platform.”
Our Telecity deal completes a busy year of acquisitions for Equinix, starting last January when we acquired the professional services company Nimbo, and continuing to late last year when we closed the deal for the highly interconnected Japanese data center company Bit-isle. These deals speak to our company’s health, but also to our vision. We are experts in interconnection, and we are dedicated to increasing opportunities for the enterprise, service providers and other organizations to find it in a world that increasingly depends on it.