REDWOOD CITY, CA – Equinix, Inc. (Nasdaq: EQIX), the global interconnection and data center company, today announced the completion of its acquisition of the Infomart Dallas from ASB Real Estate Investments. The US$800 million debt and cash transaction provides approximately 1.6 million gross ft2 of space, which includes multiple diverse fiber entry points and more than 50 tenants including networks, colocation providers and office tenants.
The acquisition of the Infomart facility further broadens Equinix capabilities by strengthening interconnection density on the Equinix global platform; providing opportunity to accelerate business relationships in industries such as banking, technology, energy and healthcare; and supporting the Equinix enterprise offering. Additionally, it secures the ability to further expand in the Dallas market through build-out of the existing underdeveloped capacity and additional capacity to build on land adjacent to the Infomart building.
The agreement was signed on February 11, 2018 and the acquisition was completed on April 2, 2018.
- The Infomart building generated approximately $50 million of revenues in 2017. Of that revenue, approximately $20 million was attributed to rent and maintenance recoveries from Equinix. Equinix expects this transaction to be adjusted funds from operations (AFFO) per share breakeven one year from closing. Additionally, there is a sizable AFFO upside from the future development of the acquired land parcel that is adjacent to the Infomart Dallas building.
- The acquisition of this landmark facility and tenants will further strengthen the Equinix global platform. The Infomart is one of the largest interconnection hubs in the U.S. and is currently home to four of eight Equinix Dallas International Business Exchange™ (IBX®) data centers (DA1, DA2, DA3 and DA6). These data centers combined support approximately 3,500 built out cabinets and house more than 100 network service providers—more than any other data center provider in the Dallas metro area.
- 451 Research 2017 “Dallas: Multi-Tenant Datacenter Market” report forecasts an 11% compound annual growth rate for data center capacity added to the Dallas market from 2013 through 2019. According to the report, market growth is fueled by “a strong demand driven by a steady increase of enterprises across multiple verticals locating their regional or national headquarters in the area. Additionally, the market continues to see interest from enterprises headquartered in major coastal markets, as they look to select a central location with high connectivity and low cost of operations for data-supporting operations across the US.”1
- Dallas is a major interconnection point for LATAM traffic with key terrestrial routes serving Central and South America. In combination with our operations in Miami, Los Angeles, Bogotá, Sao Paulo, and Rio de Janeiro, Equinix continues to expand our solutions for enterprise, cloud and content providers looking to address the Latin America Market. According to the 2017 Interconnection Index Report published by Equinix, LATAM is expected to be the fastest-growing region in terms of Interconnection Bandwidth through 2020 as customers embrace an Interconnection Oriented Architecture approach.
- As part of the deal, 28 Infomart employees, primarily in the operations functions of the acquired facility, have become Equinix employees or contractors.
Equinix, Inc. (Nasdaq: EQIX) connects the world’s leading businesses to their customers, employees and partners inside the most-interconnected data centers. In 48 markets worldwide, Equinix is where companies come together to realize new opportunities and accelerate their business, IT and cloud strategies. www.equinix.com/