Global interconnection and data center company Equinix announced an agreement Wednesday to purchase Infomart Dallas from ASB Real Estate Investments through an $800 million debt and cash deal.
The transaction, which is expected to close by mid-2018, includes Infomart’s operations and tenants with around 50 of its current employees and contractors, mostly in operations functions, becoming Equinix employees or contractors.
The deal will allow current and new Equinix customers to scale their operations said Karl Strohmeyer, president of Americas at Equinix, in a statement. He said Dallas is becoming an “increasingly strategic North American interconnection hub for businesses making the shift to digital.”
“This includes a rich portfolio of interconnection options, including on-demand connections to partners and infrastructure in any Equinix location globally through the new capabilities of Equinix Cloud Exchange Fabric.”
“This includes a rich portfolio of interconnection options, including on-demand connections to partners and infrastructure in any Equinix location globally through the new capabilities of Equinix Cloud Exchange Fabric,” Strohmeyer said.
According to the release, Infomart is one of the largest interconnection hubs in the U.S. and houses four of Equinix Dallas International Business Exchange data centers out of eight total in Dallas.
The Infomart generated around $50 million in revenue last year with approximately $20 million attributed to rent and maintenance. The 1.6 million gross-square-foot building has multiple fiber entry points and has underdeveloped capacity offering Equinix expansion opportunities, and the purchase encompasses additional expansion on land adjacent to the building that Equinix can tap for future development.
The deal includes a cash consideration of $31 million along with $750 million in senior unsecured notes issued to ASB with various maturities over 36 months once the deal is closed. Those notes will be valued at around $769 million after adjustment to reflect the current trading value of Equinix’s outstanding bonds, according to the release.
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