Digital infrastructure company, Equinix, has announced the completion of the deal to acquire West African data center and connectivity solutions provider MainOne for an enterprise value of US$320M, marking the beginning of its expansion into the African continent.
The completion of this acquisition augments Equinix’s long-term strategy to become a leading African carrier-neutral digital infrastructure company by being able to bring a full range of transformative technologies and connectivity to Nigeria, Ghana, and Cote d’Ivoire. This acquisition will extend Platform Equinix into West Africa, giving organizations based inside and outside Africa access to global and regional markets.
Nigeria has both the largest population and the largest economy of any country in Africa, with approximately 142 million active internet subscribers. Home to new innovative digital ecosystems in fintech and content and digital media, it has a great opportunity for the expansion of digital services.
Equinix believes MainOne, headquartered in Lagos, to be one of the most exciting technology businesses to emerge from Africa, and Lagos is rapidly becoming a key connectivity hub for the wider West Africa region. Founded by Funke Opeke in 2010, the company has enabled connectivity for the business community of Nigeria and now has digital infrastructure assets, including three operational data centers, with an additional facility in Lagos expected to open in April 2022.
MainOne’s assets include:
· Four operational data centers, which will add more than 64,000 gross square feet of space to Platform Equinix, in addition to 570,000 square feet of land for future expansions.
· 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 points of presence (PoPs) in cities across Portugal, Nigeria, Ghana, and Cote d’Ivoire.
· 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 currently generate approximately US$60M annualized (Q2’21LQA) revenue with a purchase multiple of approximately 14x EBITDA.
· MainOne will operate under a new brand “MainOne, an Equinix company”
· Funke Opeke will continue to lead under the new brand of “MainOne, an Equinix company.”
· Globally, Platform Equinix is comprised of 240 data centers across 66 metros and 27 countries on 6 continents, providing data center and interconnection services to 10,000+ companies including more than 50% of Fortune 500 companies.
The closure of the MainOne acquisition marks the latest in a series of strategic acquisitions for the world’s digital infrastructure company. Following the announcement of intent to acquire MainOne in December 2021, Equinix recently announced expansions in South America with its intended acquisition of three Entel data centers to accelerate digital transformation opportunities for local businesses and multinational companies. Both acquisitions followed announcements to acquire 13 Bell data centers in Canada and two highly interconnected data centers in Mumbai through the acquisition of GPX India in October 2020 and September 2021, respectively.