Equinix: Verizon data center deal helps us capitalize on enterprise cloud deployments

A data center
Through its purchase of Verizon data center assets, Equinix will gain a larger portfolio and expand its footprint into new markets.

Equinix says that by purchasing the Verizon data center assets it will have a larger portfolio to address the enterprise market's migration to the cloud.

One of the immediate benefits of the deal is greater reach.

By acquiring the Verizon assets, Equinix also expands footprint into three new markets and gains new interconnection opportunities into Latin America through the NAP of the Americas site.  

RELATED: Equinix purchases Verizon's data centers for $3.6B, enhances interconnection portfolio

Equinix told investors during the Barclays Global Technology, Media, and Telecom event that it has an opportunity to “reignite growth across the asset portfolio.”

Now that it has just announced the Verizon data center asset acquisition, the question is will the company make other deals in the future?

In the near-term, Equinix will have its hands full with integrating the Telecity assets and completing the Verizon acquisition.

However, Keith Taylor, CFO of Equinix, said that consolidation in the data center industry is inevitable.

“I think there’s going to be continued consolidation in our segment,” Taylor said. “We are very disciplined in our approach.”

Equinix said that in considering other deals it would have to consider four factors: geography, interconnection capabilities, accretive, and the price.

“Anything we look at has to meet those criteria, and if it does we’ll take a serious look at it,” Taylor said.

The data center provider has been an acquisitive company in recent years, signaling ongoing consolidation of the data center market segment.

In all, the Verizon deal is Equinix’s thirteenth acquisition.

Besides buying Verizon’s data centers, Equinix purchased Telecity in 2015 for $3.6 billion, beating out rival Interxion.

As a condition of that deal, Equinix sold eight European data center assets to Digital Realty for $874 million, fulfilling a mandate by the European Commission to gain approval of its Telecity Group acquisition.