Verizon Sells 24 Data Centers Including Bogotá Site to Equinix in $3.6 Billion USD Deal

In a massive $3.6 billion USD deal, Verizon has sold Equinix 24 of its data centers, including one site in Bogotá. The cash purchase includes locations in 15 metropolitan areas, mostly in the United States, and some 900 incumbent customers that are already clients of the centers.

Among these are “a significant number of enterprise customers new to Equinix’s platform,” according to the Redwood City, California-based data center company.

Photo: From its operations headquarters in Basking Ridge, New Jersey, Verizon announced the mammoth deal to divest itself of data centers in 15 markets. (Credit: Verizon)

“This unique opportunity complements and extends Equinix’s strategy to expand our global platform,” said Steve Smith, president and CEO of Equinix. “It enables us to enhance cloud and network density to continue to attract enterprises, while expanding our presence in the Americas.”

In addition to the site in Colombia, Equinix is getting another international location in São Paulo, Brazil, in a deal that could be completed by the middle of 2017.

Sam Smith, chief executive officer and president, of Equinix. (Credit: Equinix)

Overall, the company is adding some 2.4 million gross square feet and bringing its global footprint to 175 data centers in 43 markets.

“The new assets will bring hundreds of new customers to Platform Equinix while establishing a presence in new markets and expanding our footprint in existing key metros,” said Smith. “The deal will also provide significant value for shareholders as the proposed transaction is expected to be immediately accretive to our adjusted funds from operations per share upon close.”

For its part, Verizon has become less interested in the data center business. Though it still maintains major centers throughout the world, this move is being touted as one that will help it better devote its efforts to other core business areas.

“This transaction aligns with Verizon’s strategy to focus resources in areas that will help drive digital transformation for enterprise customers, while providing world-class service,” said Verizon in a statement. “The sale does not affect Verizon’s managed hosting and cloud offerings, or its data center services delivered from 27 sites in Europe, Asia-Pacific, and Canada.”