Global digital infrastructure company Equinix has announced its expansion into Africa through its intended acquisition of MainOne, one of the leading West African data centre and connectivity solutions providers
Under the terms of the transaction, the management team, including CEO Funke Opeke, will continue to serve in their respective roles. The acquisition is expected to close Q1 of 2022, subject to the satisfaction of customary closing conditions including the requisite regulatory approvals.
The transaction has an enterprise value of US$320mn and is expected to be AFFO accretive upon close, excluding integration costs, marking the first step in Equinix’s long-term strategy to become a leading African carrier neutral digital infrastructure company. With more than 200 million people, Nigeria is Africa’s largest economy and, along with Ghana, has become an established data center hub. This makes the acquisition a pivotal entry point for Equinix into the continent.
Upon closing, these facilities will add more than 64,000 gross sq f of space to Platform Equinix, with 570,000 sq f of land for future expansions.
MainOne owns and operates a subsea network from Nigeria to Portugal, as well as 1,200km of reliable terrestrial fibre network across southern Nigeria. These are all improving connectivity to and from Europe, West African countries and the major business communities in Nigeria. When completed, this acquisition will extend Platform Equinix into West Africa, giving organisations based inside and outside of Africa access to one of the world’s fastest growing markets.
Charles Meyers, president and CEO, Equinix, said, “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.”