Boston-based Iron Mountain Inc. paid €205 million, or $235 million, to acquire the Dutch data center businesses of EvoSwitch Netherlands BV and EvoSwitch Global Services BV from EvoSwitch International BV.
The two businesses, known as EvoSwitch NL, provide multitenant data center space and operate one of the largest colocation facilities centers in the Amsterdam metropolitan region.
The acquisition is expected to contribute 11 megawatts of fully leased data center capacity, along with an expansion capacity of 23 MW, in the Netherlands to Iron Mountain. It follows Iron Mountain's agreement in October 2017 to buy two Credit Suisse data centers in London and Singapore for about $100 million.
Included in the new deal are two facilities in the metropolitan region, spanning 150,000 square feet and 57,000 square feet, respectively. The larger of the two contains 87,000 square feet of existing data halls with about 11 MW of capacity, of which 600 kilowatts is pre-leased to cloud hosting company Leaseweb Netherlands BV. The facility may be extended to up to 430,000 square feet to house 14-MW data halls.
The second facility includes a 41,000-square-foot data hall development, with an expansion capacity for additional 7 MW.
The consideration represents a multiple of roughly 14x 2018 EBITDA, minus integration expense. The deal includes a future revenue credit of up to $25 million to Leaseweb, which could be used for expansion and new leasing in Iron Mountain Data Centers' other global locations before June 2028, subject to conditions.
EvoSwitch NL's existing capacity is expected to generate about $30 million in annualized revenue. Factoring in integration costs, the company sees a modest dilution of approximately 0.5% in its 2018 adjusted funds from operations. The debt-funded deal will become accretive in 2019 after integration.
