Supports Demand from Multinational Customers for Expansion into China
REDWOOD CITY, Calif.— July 9, 2012 — Equinix, Inc. (NASDAQ:EQIX, news, filings), a provider of global data center services, today announced it has completed the acquisition of Hong Kong-based data center provider Asia Tone in an all cash transaction valued at $230.5 million. The acquisition of Asia Tone further strengthens Equinix’s position in Asia-Pacific—the company’s fastest growing region—and increases its presence in Shanghai to support growing demand from multinational customers looking to expand in 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 key 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. Equinix will integrate Asia Tone business operations, staff and customer base and will ensure that the data centers meet Equinix standards for operational and customer service excellence.
Equinix, Inc. (NASDAQ: EQIX) connects businesses with partners and customers around the world through a global platform of high performance data centers, containing dynamic ecosystems and the broadest choice of networks. Platform Equinix connects more than 4,000 enterprises, cloud, digital content and financial companies including more than 900 network service providers to help them grow their businesses, improve application performance and protect their vital digital assets. Equinix operates in 38 strategic markets across the Americas, EMEA and Asia-Pacific and continually invests in expanding its platform to power customer growth. http://www.equinix.com.
Forward Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, the challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenue from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; and other risks described from time to time in Equinix’s filings with the Securities and Exchange Commission. In particular, see Equinix’s recent quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
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