Global interconnection and data center company Equinix, Inc. has entered into a definitive agreement to acquire a portfolio of 13 data centers across Canada from BCE Inc. (Bell) for US$750 million (CA$1,041 million) in an all-cash transaction.
The 13 data center sites, which represent 25 Bell data center facilities, are expected to generate approximately US$105 million (CA$150 million) annualized revenue (Q4’20E LQA), which represents a purchase multiple of approximately 15x EV / adjusted EBITDA, said Equinix in a press release.
More than 600 Bell customers currently operating within the 13 data centers will become Equinix customers, with more than 500 of these representing net new customers. The acquired customers comprise a diversity of sectors and segments, including enterprise, cloud and IT, government and financial services.
Under the terms of the agreement, Equinix and Bell will begin a strategic partnership to enable enterprises in Canada to leverage hybrid multicloud solutions to accelerate their digital transformation.
The acquisition will expand Equinix’s coverage in Canada coast to coast, making it a market leader in data center and interconnection services. In addition to adding new capacity in Toronto, Ontario, where Equinix currently operates two International Business Exchange™ (IBX®) data centers, it will extend Equinix’s interconnection services to seven new metros. These metros include Calgary, Alberta; Kamloops and Vancouver, British Columbia; Millidgeville, New Brunswick; Montreal, Quebec; Ottawa, Ontario; and Winnipeg, Manitoba.
”Canadian businesses are in the midst of a significant transformation as they evolve their operations to be increasingly digital and cloud-enabled.”
“Canadian businesses are in the midst of a significant transformation as they evolve their operations to be increasingly digital and cloud-enabled. With a platform that enables companies to increase the scale, reach and connectivity of their growing digital businesses, Equinix provides a compelling vision for businesses to rapidly and broadly interconnect with the people, locations, cloud services and data that matter most to their business. This expansion is a significant win for Canadian businesses, as well as for multinational companies that can leverage Platform Equinix to increase their digital presence in Canada by interconnecting to a rich ecosystem of customers, business partners and other strategic companies in Canada,” said Charles Meyers, President and CEO, Equinix.
“The acquisition of these 13 strategic assets further extends the depth and breadth of Equinix’s global platform, which currently spans 26 countries and 55 metros. It will position Equinix as a market leader for data center and interconnection services in Canada, with high-quality assets from coast to coast and a large, diversified ecosystem of Canadian businesses. Additionally, it opens key gateways for North America to Asia through Vancouver and North America to Europe through the submarine cable systems in the Millidgeville area,” said Jon Lin, President, Americas, Equinix.
”Our partnership with Equinix will further accelerate digital transformation opportunities for Canadian enterprise customers, combining access to Equinix’s interconnected global data centre platform with Bell’s advanced broadband network connections, wide range of cloud solutions and experienced professional services team,” added Tom Little, President, Bell Business Markets.