After months of rumors, it finally confirms that Equinix has bought Itconic’s data center business for a total of 215 million euros, with the intention of multiplying its business in Europe, Latin America and Africa.
Equinix has reached an agreement with The Carlyle Group to purchase Itconic, provider of neutral data center solutions, connectivity and cloud infrastructure in Spain and Portugal, and Cloudmas, the Itconic brand focused on enabling the adoption and use of services cloud by companies . Equinix will buy the two companies in a cash transaction amounting to 215 million euros. The acquisition is expected to be closed in the fourth quarter of 2017 as it is subject to customary closing conditions, including regulatory approval.
The transaction includes the purchase of Itconic’s five Data Centers , located in Madrid, Barcelona, Seville and Lisbon, adding approximately 322,000 gross square feet to the Equinix International Business Exchange (IBX) portfolio of data centers. In addition, Cloudmas will provide Equinix with a team of technology professionals and highly qualified, with extensive experience in hybrid cloud architectures and strategies for adoption and migration of cloud computing . Itconic generated approximately 55.5 million euros in revenues in the second quarter annualized of 2017.
The purchase of Itconic will enable Equinix to support the growth of data traffic between Europe, Latin America and Africa, driven by new submarine cable systems that will accelerate the globalization of traffic and data consumption, as well as the rapid growth of cloud services and online. Some of the submarine cables already connected to the Itconic Lisbon data center are ACE (African Coast to Europe), WACS (West Africa Cable System), Tata Global Network, to be joined in the future MainOne cable. In addition, the data center of Seville is already connected to Canalink.
According to Eric Schwartz, president of Equinix EMEA, “The Iberian peninsula is witnessing the large-scale deployment of new submarine cable systems between Europe and Latin America, making the region an important center of global interconnection and a geographically important area for us. With the acquisition of Itconic, we continue to offer the level of excellence and interconnection that the industry expects and that our customers demand. Our continued growth is a sign of our commitment to the region and the development of our global footprint seeks to benefit our customers and meet growing digital business needs. “