Equinix has been adding space organically in Asia at quite a good clip, but apparently it wasn’t fast enough to keep them happy.
The carrier-neutral colocation giant is buying data center assets and operations across Hong Kong, Singapore, and Shanghai from Hong-Kong-based Asia Tone. Not quite all of Asia Tone though perhaps, as they also seem to have facilities in Jiangsu and Guangzhou, and perhaps others in Hong Kong and Singapore they aren’t selling – it isn’t clear from the company’s website.
In the deal, Equinix will take possession of five existing data centers, a disaster recovery facility, and one data center still under construction. That last one is in Shanghai, and will feature 80,000 square feet of space.
Equinix already has a Shanghai presence through a partner, but this will give them a solid foothold of their own in mainland China. It will boost their total global footprint to 104 facilities across 38 markets.
The deal will cost Equinix $230.5 million in cash and is expected to close in the third quarter. Asia Tone generated about $30 million annually in 2011 and is expected to be adjusted free cash flow positive for Equinix this year.
This article was authored by Rob Powell and was originally posted on Telecomramblings.com
Rob Powell is founder & editor of Telecom Ramblings, which was set up in 2008. The website is dedicated to discussing trends and developments in the telecom industry.