Equinix, Inc. (Nasdaq: EQIX) says it has agreed to purchase Itconic, a data center, connectivity, and cloud infrastructure services provider in Spain and Portugal, and CloudMas, an Itconic subsidiary that supports enterprise adoption and use of cloud services, from The Carlyle Group. Equinix will buy the companies for €215 million (approximately $259 million) in cash.
The acquisition, which is expected to close in Q4 of 2017 pending customary closing conditions, will include one data center each in Barcelona, Seville, and Lisbon and two data centers in Madrid. Signed on September 8, 2017, the agreement will add approximately 322,000 gross square feet to the Equinix International Business Exchange (IBX) data center portfolio. Equinix now operates over 180 IBX data centers in 44 markets.
The acquisition will add more than 250 employees to the European Equinix team, with many CloudMas team members bringing deployment and support of services' certifications on advanced cloud platforms. The company will also serve more than 400 customers in Iberia as a result of the acquisition.
Itconic generated approximately €55.5 million ($66.8 million) in revenues for the period Q2 2017 annualized.
"The large-scale deployments of new direct submarine cables between Europe, Latin America, and Africa will connect through Iberia, making it a globally relevant key interconnection hub and a geographically important region for Equinix," said Eric Schwartz, president of EMEA, Equinix. "With the acquisition of Itconic, we will continue to deliver the level of excellence and Interconnection that the industry expects and which our customers demand. Our ongoing growth signifies our commitment to the region and to developing our global footprint to support the growing digital business needs of our customers."
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