Equinix, the global datacenter services firm, announced this morning that it would sell 16 U.S. facilities -- that's some 280,000 square feet of dedicated data-crunching space -- to an investment group that includes 365 Main, Crosslink Capital and Housatonic Partners for about $75 million.
The sold facilities span the entire country. The company is outright exiting the markets of Buffalo, Cleveland, Detroit, Indianapolis, Nashville, Phoenix, Pittsburg, St. Louis and Tampa. (It remains involved in Chicago, Washington, Dallas, New York, Philadelphia, Seattle and the Bay Area.)
Why? Equinix Americas president Charles Meyers explains:
As we sharpen our focus on developing business ecosystems, we are prioritizing the largest global markets required by our targeted customers and applications that are driving growth across Platform Equinix. We believe the divestiture of these assets will allow us to focus our capital and energy on our most productive data centers and will ensure that customers at these sites will be supported by an experienced data center operator that will continue to invest in these locations. We are excited to partner with 365 Main to make this transaction a success.
San Francisco-based 365 Main was founded in 2002 by Chris Dolan and James McGrath; it runs six facilities nationwide, targeting the mid-market, mult-tenant wholesale market. This deal is obviously a big portfolio boost for the smaller company.
Equinix customers deployed in the 16 data centers in question will be transferred to 365 Main as part of the transaction, along with some of the employees that work the sites. The transaction is expected to close in the fourth quarter of 2012.
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