Tuesday, September 4, 2012

Equinix Tightens Focus on Key Markets and Platform

Equinix is selling 16 data centers across the U.S. to an investment group consisting of 365 Main, Crosslink Capital and Housatonic Partners, as part of a strategic plan to focus on key facilities and partner ecosystems in major markets.

The deal, which is valued at about $75 million, includes approximately 280,000 total gross square feet of data center space in 16 facilities.  Revenue from these data centers represents about 2 percent of Equinix's annual turnover. The transaction is exexpected to close in Q4.

Nine of the 16 data centers are in markets Equinix will exit with the close of the sale. Those markets include Buffalo, Cleveland, Detroit, Indianapolis, Nashville, Phoenix, Pittsburg, St. Louis and Tampa. The remaining seven data centers are in markets where Equinix will retain a presence and currently has sufficient capacity to meet customer demand. These sites include CH6 (427 La Salle, Chicago), DC9 (11513-19 Sunset Hills Road, Reston, VA), DA5 (4101 Bryan St., Dallas), NY10 (65 Broadway, New York), PH2 (3701 Market St., Philadelphia), SE1 (1914 Third Ave., Seattle), and SV7 (534 Stockton Ave., San Jose).

“As we sharpen our focus on developing business ecosystems, we are prioritizing the largest global markets required by our targeted customers and applications that are driving growth across Platform Equinix,” said Charles Meyers, president of the Americas for Equinix. “We believe the divestiture of these assets will allow us to focus our capital and energy on our most productive data centers and will ensure that customers at these sites will be supported by an experienced data center operator that will continue to invest in these locations. We are excited to partner with 365 Main to make this transaction a success.”