COUNTRY FOCUS : NIGERIA
Funke Opeke , Founder and CEO , MainOne telecommunications operators , financial service companies and cloud service providers
• Nearly 500 employees and a management team with a deep understanding of local and international markets
• The facilities generate approximately US $ 60 million annualised ( Q2 ’ 21LQA ) revenue with a purchase multiple of approximately 14x EBITDA
• Globally , Platform Equinix is comprised of 237 data centres across 65 metros and 27 countries , providing data centre and interconnection services for over 10,000 of the world ’ s leading businesses , including more than 50 % of Fortune 500 companies .
Key facts
Under the terms of the agreement , Equinix intends to acquire MainOne and its assets with an all-cash transaction at an enterprise value of US $ 320 million , which is expected to be AFFO accretive upon close , excluding integration costs . The transaction is expected to close Q1 of 2022 , subject to the satisfaction of customary closing conditions including the requisite regulatory approvals .
MainOne ’ s assets include :
• Three operational data centres , with an additional facility under construction expected to open in Q1 , 2022 . These facilities will add more than 64,000 gross square feet space to Platform Equinix , in addition to 570,000 square feet of land for future expansions .
• An extensive submarine network extending 7,000 kilometres from Portugal to Lagos , Accra and along the west African coast , with landing stations in Nigeria , Ghana and Côte d ’ Ivoire
• A terrestrial network of more than 1,200 kilometres of reliable terrestrial fibre in Lagos , Edo and Ogun States . Connectivity to terrestrial sites extends across 65 points of presence ( PoPs ) in cities across Portugal , Nigeria , Ghana and Cote d ’ Ivoire
• Access to key Internet exchanges enabling low latency to key global networks , including Amazon , Microsoft , Apple , Google and Facebook
• An estimated 800 plus business-to-business customers , including major international technology enterprises , social media companies , global
John Dinsdale , Chief Analyst and Research Director , Synergy Research Group , said : “ Africa has been the missing piece in the Equinix jigsaw and this acquisition of MainOne will be a great first step onto the continent . The demand for data centre services in Africa is strong , with Nigeria at the epicentre of exponential economic growth in West Africa . Nigeria is Africa ’ s largest country by both population and economy , and its growth drivers include rapid mobile adoption , increased data consumption from its young population , good subsea and terrestrial connectivity , and a strong enterprise market . This is advancing the region toward a more digitalised economy and driving data centre growth and expansion to provide much-needed digital infrastructure .
Funke Opeke , Founder and CEO , MainOne , added that : “ Equinix will accelerate our long-term vision to grow digital infrastructure investments across Africa . I thank our founding shareholders led by Fola Adeola , MainStreet Technologies , AFC , PAIDF , FBN , Polaris and AfDB for investing in the MainOne vision to bridge the digital divide in Africa . With similar values and culture to what we have jointly built in 12 years , Equinix is the preferred partner for our growth journey . The MainOne team is excited about the partnership created through the acquisition , and we look forward to building our next chapter together .”
Eugene Bergen , President , EMEA , Equinix explained that : “ Expansion in Africa has long been a strategic priority for us . With MainOne , we have found a company that not only has highly complementary data centre and connectivity assets , but can further accelerate the expansion of our business model and growth objectives . CEO Funke Opeke and her team have built a powerful and dynamic infrastructure that will enable international customers access to the continent and African organisations access to the global Equinix platform . Customers can take full advantage of Equinix ’ s leading global interconnection services to connect with customers and partners , participate in rich digital ecosystems and expand their business across Africa and around the world .” p
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