Equinix has announced plans to acquire Australian data centre operator Metronode for $1.03 billion, in a bid to expand national capabilities across the country.
The data centre giant has entered into an agreement with Ontarion Teacher’s Pension Plan (OTPP), the Canadian financial institution which owns Metronode.
Metronode operates 10 data centres in Australia with a single storey facility in Adelaide, an 860 square metres facility in Brisbane, one in Canberra, two in Melbourne, another two in Perth, two in Sydney and one in Wollongong.
Specifically, Metronode’s data centres houses mission-critical internet and communications infrastructure for some of Australia’s largest corporations, government agencies, telecommunications and IT service providers.
The agreement was signed on 16 December; roughly a year after OTPP acquired Metronode with the transaction expected to to close in the first half of 2018, subject to some closing conditions including regulatory approval.
"With this acquisition, companies operating across Australia will have access to the largest network of highly interconnected data centres in the world,” Metronode CEO, David Yuile, said.
“Metronode is excited to become part of an industry-leading company and further help our customers to build their digital infrastructure and drive competitive advantage in the digital age.”
Metronode generated approximately $60 million of revenues in the 12 months ending 30 September.
With the acquisition, Equinix will expand its presence through Metronode’s 10 data centres adding presence in Adelaide, Brisbane, Canberra and Perth.
The acquired Metronode sites add approximately 20,000 square metres of gross colocation space to the Equinix footprint.
“As well as expanding our national footprint with Metronode’s existing sites, this acquisition also enables us to build out sites that are currently in development to further expand our presence in Australia,” Equinix Australia managing director, Jeremy Deutsch, added.
“This will enable us to continue to deliver the level of excellence and interconnection that our customers expect, and signifies our commitment to the region in supporting the growth of digital businesses.”
With Metronode’s Perth site becoming the landing station for the new Vocus Australia Singapore Cable, Equinix will be positioned as a leading provider of access to intercontinental connectivity across the combined national footprint when that is combined with the existing submarine cable deployments in Sydney, according to the company.
Once the acquisition closes, Equinix will have 40 data centres in Asia Pacific extending its global footprint to 200 data centres in 52 markets.
“The acquisition of Metronode helps Equinix to accelerate the expansion of our global footprint and support our customers in the region as they move their infrastructure to the edge, closer to their customers and partners,” Equinix Asia-Pacific president, Samuel Lee, added.
In November, Metronode announced its second data centre facility in the Wollongong suburb of Unanderra, NSW, just months after revealing plans to spend more than $150 million in infrastructure projects this year.