Equinix has completed its $230 million acquisition of Hong Kong-based data center provider Asia Tone in an all cash transaction valued at $230.5 million, which will strengthen the colocation specialist's position in the Asia-Pacific region, including China.
With the acquisition of Asia Tone, Equinix now has a footprint of 105 data centers located in 38 markets around the world. Equinix gains a total of six data centers and one disaster recovery center located across three markets - Hong Kong, Shanghai and Singapore. This includes one data center under construction in Shanghai which will be built in three phases and will provide an additional capacity of 80,000 square feet and approximately 900 cabinets when completed. The first phase will be completed in Q3 2012. As one of fastest growing colocation markets in the world, China is the most requested market for Equinix customers looking to expand globally. Equinix plans to offer premium colocation services in China.
"With the acquisition of Asia Tone, Equinix is in a strong position to establish market leadership in Asia-Pacific," said Steve Smith, president and CEO of Equinix. "As our fastest growing region and one in high demand by customers, we see a tremendous opportunity to continue our track record of growth in Asia-Pacific. With our increased footprint in China and growing capacity in Shanghai, we are well-positioned to meet demand from multi-national customers looking to expand in this high-growth market."
Asia Tone is among the leading data center service providers in Asia-Pacific, and serves more than 80 customers across the region, approximately one-third are existing Equinix customers. Durin ghte integration process, Equinix will "ensure that the data centers meet Equinix standards for operational and customer service excellence," the company said. Asia Tone generated approximately $30 million in revenue in 2011, and has been growing at a greater than 50 percent growth rate for the past three years. The Asia Tone business is expected to be adjusted free cash flow positive in 2013.