Equinix enhances its European reach by acquiring ancotel
Equinix Inc. (Nasdaq: EQIX) is purchasing ancotel GmbH, a European carrier-neutral colocation and interconnection provider, a move that will instantly up its European presence.
By acquiring ancotel, Equinix instantly adds a 2,100 square-foot data center in Frankfurt, as well as adding over 400 network customers to its European roster. This figure includes 200 new networks and 6,000 cross connects.
Set to close in the third quarter of 2012, the acquisition of ancotel will give Equinix's customers access to the Frankfurt facility, which is one of the world's busiest data hubs.
From this campus location, customers will be able to get access to a large mix of networks from Western and Eastern Europe, in addition to being able to expand their data footprint with Equinix.
In addition to its Frankfurt facility, ancotel has a set of complementary edge nodes in Hong Kong, London and Miami, providing Equinix additional points of presence in these markets. At the same time, ancotel's existing customers will be able to access Equinix's global reach and its Platform Equinix and its Marketplace of over 4,000 customers.
Equinix said the purchase of ancotel won't affect its objective to be adjusted free cash flow positive in 2013. In 2011, ancotel reported revenue of roughly $21.4 million in 2011, and has been growing at a greater than 20 percent CAGR since 2009.
Scaling its business through targeted acquisitions has been an ongoing trend for Equinix. Earlier this month it reached a deal to bolster its Asia Pacific presence by signing a deal to acquire Asia Tone.
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