Equinix has entered into an agreement with Ontario Teachers’ Pension Plan to acquire all of the equity interests in Australian data center business Metronode, in an all-cash transaction for A$1.035 billion (approximately $792 million).
Metronode operates data center facilities throughout Australia, housing mission-critical internet and communications infrastructure for some of Australia’s largest corporations, government agencies, telecommunications and IT service providers. Metronode generated approximately A$60 million of revenues in the 12 months ending September 30, 2017.
Equninix said the acquisition of Metronode will further strengthen its position in the Asia-Pacific region and support its ongoing global expansion.
The Metronode buyout will add ten data centers to Equinix’s Australian footprint (for a total of 15), strengthening its position in Sydney and Melbourne, and adding Perth, Canberra, Adelaide and Brisbane to the Equinix global platform. It also expands Equinix’s Asia-Pacific coverage to 40 data centers, and will extend its global footprint to 200 data centers in 52 markets.
Metronode’s Perth site on the west coast of Australia will house the landing station for the new Vocus Australia Singapore Cable.
The enhanced national footprint of Equinix in Australia creates an opportunity to expand on Metronode’s relationships with government agencies across the Australian market, including supporting the New South Wales Government with the provision of capacity in two data centers for the GovDC program.
The transaction is expected to close in the first half of 2018, subject to some closing conditions including regulatory approval.