Equinix $320M acquisition of MainOne will attract more value chain - MainOne CEO
Equinix, one of the world’s digital infrastructure company had announced its expansion into Africa through its intended acquisition of MainOne, a leading West African data center and connectivity solutions provider, with presence in Nigeria, Ghana and Côte d’Ivoire.
The transaction has an enterprise value of US $320M, as acquisition is expected to close Q1 of 2022, subject to the satisfaction of customary closing conditions including the requisite regulatory approvals.
MainOne’s assets include: Three operational data centers, with an additional facility under construction expected to open in Q1 2022. These facilities will add more than 64,000 gross square feet space to Platform Equinix, in addition to 570,000 square feet of land for future expansions.
Others are, 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; A terrestrial network of more than 1,200 kilometers of reliable terrestrial fiber in Lagos, Edo and Ogun States. Connectivity to terrestrial sites extends across 65 PoPs (points of presence) in cities across Portugal, Nigeria, Ghana and Cote d’Ivoire.
With access to key internet exchanges enabling low latency to key global networks, including Amazon, Microsoft, Apple, Google and Facebook; an estimated 800+ business-to-business customers, including major international technology enterprises, social media companies, global telecommunications operators, financial service companies and cloud service providers.
Nearly 500 employees and a management team with a deep understanding of local and international markets. The facilities generate approximately US$60M annualized (Q2’21LQA) revenue with a purchase multiple of approximately 14x EBITDA.
Globally, Platform Equinix is comprised of 237 data centers across 65 metros and 27 countries, providing data center and interconnection services for over 10,000 of the world’s leading businesses, including more than 50% of Fortune 500 companies.
MainOne Chief Executive Officer, Funke Opeke during a live Television an interview on Wednesday, said Nigeria has been largely consumers of technology, by building infrastructure here MainOne has been able to deliver more value chain here in Nigeria,
According to her, MainaOne started that journey by building our own local infrastructure, been able to house content locally, been able to transport content in our market eleven years ago.
She said, “Now the world global platform is saying we want you to be part of our platform, Nigeria was not on the map, now you have all the global giants having a presence in Nigeria, Microsoft, Google, Facebook in Nigeria, all this global players Amazon are taking interest because they want to participate here.
“By having this platform we are bringing more of the value chain other than, they just transmitting information but able to actually service the requirement out of here by Nigerians and to be a part of that global platform, and Equinix brings investment, brings knowhow, brings relationship with all these global companies as well as technologies that becomes available not just the global companies coming in but to local companies who want access to world class technology that they have using to service advance market now locally available in Nigeria and I think that’s value preposition.
Apart from $320M will there be other investment to role our its digital investment in Nigeria, Vice President, Growth and Emerging Market Equinix, Judith Gardiner explained that the company has its business plans and with lot of demand from customers internationally, it expects a lot of emphasis on expansion growth in twelve to eighteen months.
She said, “And what’s great about MainOne is that they have so much land already secured for almost another tens of data centres, so depending on the amount we get from our cloud service providers, network service providers, financial customers, content and digital media customers, I expect to see great surge in demand over the next five months after we close.
On how bullish will Equinix sustain the Africa market, “We have an ambition for quite some time to enter the Africa market and our corporate development team always looking at target, and when we look at west Africa and the fact that Nigeria has surpass South Africa in terms of biggest economy we felt this was our best step entering the Africa continent”.