Foster City, Calif.-based data center services provider Equinix has entered into an agreement to acquire Switch & Data Facilities Company in a transaction valued at approximately $689 million in cash and stock, both companies said in a joint announcement today. The transaction is expected to close in the first quarter of 2010.
The acquisition, which will integrate Switch and Data’s data center business and operations, including the company’s 34 data centers in 22 markets in the U.S. and Canada, will extend Equinix’s presence in 16 new markets across North America.
Equinix will gain more than one million gross square feet of data center capacity, bringing the company’s total global footprint to 79 data centers in 34 markets and more than six million square feet across the North American, European and Asia-Pacific markets. It will also allow Equinix to immediately expand into new strategic markets, including Atlanta, Denver, Miami, Seattle and Toronto, as well as provide a platform for future expansion of Switch and Data assets, the company noted.
“The strategic acquisition of Switch and Data by Equinix further strengthens Equinix’s position as the most comprehensive global data center services provider across North America, Asia-Pacific and Europe,” said Steve Smith, president and CEO of Equinix. “Our complementary business models, coupled with Switch and Data’s broad North American market coverage, provide a platform for strong growth as well as an opportunity to accommodate our customers’ demands for additional services.”
Keith Olsen, president and CEO of Switch and Data, added, “The combination of Switch and Data’s North American site footprint and Equinix’s global reach will increase our addressable market, enhance our customers’ value, and drive incremental value to our stockholders.”
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