Equinix buys interconnection hub Infomart Dallas for $800M
Equinix said the deal would allow the company to expand in the Dallas area.
Equinix said Wednesday that it was acquiring the operations and tenants of the Infomart Dallas, an interconnection hub that houses four of Equinix's IBX data centers, in an $800 million debt and cash transaction.
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Equinix said the deal would allow the company to expand in the Dallas area, a key interconnection and data center hub in the southwest. Infomart will be the company's 22nd acquisition to date, building off of other recent 2017 acquisitions including Verizon, Metronode, and Itconic.
"As Dallas becomes an increasingly strategic North American interconnection hub for businesses making the shift to digital, the acquisition of the Infomart will enable existing and new customers to scale their operations with Equinix," said Equinix president Karl Strohmeyer. "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."
Read also: Equinix closes $3.6 billion purchase of Verizon's datacenter assets
Last May, Equinix dropped $3.6 billion to buy 29 datacenters from Verizon, giving it 600 new customers, which CFO Keith Taylor said will add $480 million to $500 million in revenue in the first 12 months, but with a cost of $40 million to integrate.
In August, Equinix said it would also deploy Bloom Energy fuel cells in seven of its IBX data centers in Silicon Valley, three in New York, and two in Los Angeles. Equinix started a pilot at one of its Silicon Valley data centers in 2015. Overall, Equinix has committed to deploy Bloom Energy fuel cells in a dozen of its data centers.