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Equinix to buy Australia's Metronode in A$1.04B deal

Equinix Inc. agreed to a nearly A$1.04 billion, or approximately US$792 million, deal to buy Australian data center business Metronode from Ontario Teachers' Pension Plan, a move that the California-based company hopes will fortify its foothold in the Asia-Pacific region and fuel its global expansion.

The deal, scheduled to close in the first half of 2018, will increase Equinix's data center footprint in Australia to 15, with the addition of roughly 20,000 square meters of gross colocation space. It also adds more than 80,000 square meters of land, 90% of which is owned, to the global portfolio of Equinix.

Metronode generated approximately A$60 million of revenues in the 12 months ending Sept. 30, with a margin profile accretive to the Equinix Asia-Pacific business, according to a release.

J.P. Morgan served as the financial adviser of Equinix, and Allen & Overy acted as the external legal adviser of Equinix in connection with this transaction. Ontario Teachers' Pension Plan was advised by UBS and RBC Capital Markets.

Equinix is believed to have been up against Canada's Brookfield, Singapore's ST Telemedia and Switzerland's Partners Group Holding AG to secure Metronode, which the Canadian seller has been looking to divest since August.