Equinix has announced its expansion into Africa through its intended acquisition of MainOne, a leading West African data center and connectivity solutions provider. Under the agreed term, Equinix intends to acquire MainOne and its assets with an all-cash transaction at an enterprise value of $320 million, which is expected to be adjusted funds from operations (AFFO) accretive upon close, excluding integration costs. The transaction is expected to close by first quarter (Q1) of 2022, subject to the satisfaction of customary closing conditions including the requisite regulatory approvals.
Under the terms of the transaction, the management team, including MainOne’s CEO, will continue to serve in their respective roles. MainOne’s assets include three operational data centers, with an additional facility under construction expected to open in Q1 2022; 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; access to key internet exchanges enabling low latency to key global networks, including Amazon, Microsoft, Apple, Google and Facebook; over 800 business-to-business customers, including major international technology enterprises, social media companies, global telecommunications operators, financial service companies and cloud service providers; and nearly 500 employees and a management team with a deep understanding of local and international markets.
The facilities generate approximately $60 million 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 per cent of fortune 500 companies.
Commenting on the development, Charles Meyers, president and CEO, Equinix, said, “The acquisition of MainOne will represent a critical point of entry for Platform Equinix into the expansive and rapidly growing African market. MainOne’s leading interconnection position and experienced management team represent critical assets in our aspirations to be the leading neutral provider of digital infrastructure in Africa. Growth of data consumption in Africa is amongst the fastest in the world, and our customers are looking for a trusted partner to pursue the opportunities presented by broad mobile adoption and greater connectivity across the region. MainOne’s infrastructure, customer relationships, partner ecosystem and operating capability will extend the reach of Platform Equinix and bolster opportunities for customers in Africa and throughout the world.”
Meanwhile, Funke Opeke, founder and CEO, MainOne, said, “Equinix will accelerate our long-term vision to grow digital infrastructure investments across Africa. I thank our founding shareholders led by Mr. Fola Adeola, MainStreet Technologies, AFC, PAIDF, FBN, Polaris and AfDB for investing in the MainOne vision to bridge the digital divide in Africa. With similar values and culture to what we have jointly built in twelve years, Equinix is the preferred partner for our growth journey. The MainOne team is excited about the partnership created through the acquisition, and we look forward to building our next chapter together.”
