A US digital infrastructure company, Equinix has announced that it is acquiring MainOne, a West African data centre and connectivity solutions provider with a presence in Nigeria, Ghana and the Ivory Coast, for $320 million.
The acquisition is expected to close Q1 of 2022, subject to the “satisfaction of customary closing conditions including the requisite regulatory approvals.
Equinix’s acquisition of MainOne follows a series of moves the global digital infrastructure player made last year when it expanded to India through the acquisition of GPX India for $161 million and acquired 13 data centres from Bell Canada for $780 million
The president and CEO of Equinix, Charles Meyers,in a statement.
said that acquiring MainOne is the first step in its long-term strategy to become an African carrier neutral digital infrastructure company.
“With more than 200 million people, Nigeria is Africa’s largest economy and, along with Ghana, has become an established data center hub.
This makes the acquisition a pivotal entry point for Equinix into the continent,” the company said in the statement.
“MainOne’s infrastructure, customer relationships, partner ecosystem and operating capability will extend the reach of Platform Equinix and bolster opportunities for customers in Africa and throughout the world.
MainOne CEO Funke Opeke and the company’s management team will still continue to serve in their respective roles after the acquisition is finalized.
Opeke said the acquisition will accelerate MainOne’s long-term vision to grow digital infrastructure investments across Africa.
“With similar values and culture to what we have jointly built in twelve years, Equinix is the preferred partner for our growth journey.
The MainOne team is excited about the partnership created through the acquisition, and we look forward to building our next chapter together,” she added
MainOne’s services are used by over 800 business-to-business customers.
They include major international technology enterprises, social media companies, global telecommunications operators, financial service companies and cloud service providers.
Having enabled connectivity for these businesses via three operational data centers, MainOne plans to open an additional facility in Q1 2022, a move that coincides with Equinix’s acquisition.
MainOne, which has a 500-person team, said its facilities generate approximately $60 million annualized revenue with a purchase multiple of approximately 14x EBITDA.
Upon closing, these facilities will add more than 64,000 gross square feet of space to Equinix with 570,000 square feet of land for future expansions.
Globally, Equinix has 237 data centers across 27 countries.
It also provides data center and interconnection services for over 10,000 of the world’s leading businesses.
US firm Equinix acquires MainOne for $320M