Equinix closes MainOne’s $320M Acquisition, commences African Expansion

Equinix Inc., the world’s digital infrastructure company, today announced it has completed its deal to acquire West African data center and connectivity solutions provider MainOne for an enterprise value of US$320M, marking the beginning of its expansion into the African continent.

Recall that Equinix announced MainOne’s acquisition in December 2021.

The completion of this acquisition augments Equinix’s long-term strategy to become a leading African carrier-neutral digital infrastructure company by being able to bring a full range of transformative technologies and connectivity to Nigeria, Ghana and Cote d’Ivoire.

Platform Equinix will now be available in West Africa. This acquisition will allow organizations located within and outside Africa to access regional and global markets.

Nigeria boasts the largest population in Africa and the largest economy, with over 142 million active internet users.

It is home to innovative digital ecosystems in fintech, content and digital media. This offers great opportunities for the expansion of digital services.

Equinix believes MainOne, with its headquarters in Lagos, is one of Africa’s most exciting technology companies. Lagos is fast becoming a vital connectivity hub for West Africa.

Funke Opeke founded the company in 2010. The company now provides connectivity for Nigeria’s business community. It has three data centers that are operational, and a facility in Lagos is expected to open in April 2022.

Fast Facts on MainOne’s assets include:

  • Four data centers will be operational, adding more than 64,000 square feet to Platform Equinix.
  • An extensive submarine network extending 7,000 kilometers from Portugal to Lagos, Accra and along the West African coast, with landing stations in Nigeria, Ghana and Côte d’Ivoire.
  • There is a terrestrial network with more than 1,200 kilometers worth of reliable terrestrial fiber between Lagos, Edo and Ogun States. Connectivity to terrestrial sites extends across 65 points of presence (PoPs) in cities across Portugal, Nigeria, Ghana and Cote d’Ivoire.
  • Access to the internet exchanges that enable low latency access to global networks such as Amazon, Google, Apple, Google, and Facebook.
  • A total of 800+ business to business customers. These include major international technology firms, social media businesses, global telecommunications providers, financial service companies, and cloud service providers.
  • Nearly 500 employees. A management team with deep knowledge of the local and international markets.
  • The facilities currently generate approximately US$60M annualized (Q2’21LQA) revenue with a purchase multiple of approximately 14x EBITDA.
  • MainOne will operate under a new brand “MainOne, an Equinix company”
  • Funke Opeke will continue to lead under the new brand of “MainOne, an Equinix company.”
  • Platform Equinix, which is global, consists of 240 data centres in 66 metros and 27 nations on 6 continents. It provides interconnection and data center services to more than 10,000 companies, including over 50% of Fortune 500 companies.

The closure of the MainOne acquisition marks the latest in a series of strategic acquisitions for the world’s digital infrastructure company.

Equinix announced recent expansions in South America following the December 2021 announcement of MainOne’s acquisition intent. It plans to purchase three Entel data centres to increase digital transformation opportunities for local companies and multinational companies.

Following announcements of 13 Bell data centers in Canada, and two highly interconnected data centres in Mumbai through the acquisitions of GPX India (September 2021 and October 2020), both acquisitions were made.

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