Equinix has completed a transaction to buy 29 Verizon data centers announced in December 2016. The $3.6bn transaction brings the datacenters, 250 staff and 1000 customers to Equinix’s portfolio.
These data centers are part of the Terremark acquisition which Verizon made in 2011. The cluster of four data centres in Culpeper, Virginia offers an environment that meets federal government standards.
NAP of the Americas, which terminates 15 sub-sea cables, 120 global networks interconnecting 150 countries. Alongside data centers in Bogata, Columbia, and Sao Paulo, Brazil, this positions Equinix as a leading provider in the Latin America marketplace. (In the strange world of sub-sea cables, Miami is often the closest point linking different South American countries).
As part of the transaction, 60% of the customers are new to the Equinix portfolio, so this significantly boosts the Equinix customer base. Equinix will be keen to extend added services to the 600 new customers in their portfolio. This will help them continue to have 83% recurring revenues from customers in multiple metro areas. Equinix’s expanded footprint will help this process in both directions.
Verizon will resell Equinix co-location and interconnection services as part of a global deal, announced in March 2017. This provides Verizon with the ability to sell their customers data center services without the infrastructure appearing on the bottom line.