Equinix Incorporated, a multinational has entered the African market with the acquisition of MainOne, a telecommunications service provider for $320 million.
Equinix, one of the world’s largest digital infrastructure companies noted the acquisition of MainOne will make it a leading African carrier-neutral digital infrastructure company and enable it to bring a full range of transformative technologies and connectivity to Nigeria, Ghana and Cote d’Ivoire.
MainOne is West Africa’s leading data centre and connectivity solutions provider with a presence in Nigeria, Ghana, and Côte d’Ivoire. It provides highly reliable services to major telecom operators, ISPs, government agencies, small to large enterprises, and educational institutions.
MainOne acquisition will assist Equinix to extend its reach in the African market, giving it a base inside and outside of Africa, with access to global and regional markets.
MainOne’s assets include four operational data centres, which will add more than 64,000 gross square feet of space to Platform Equinix, in addition to 570,000 square feet of land for future expansions.
Under the deal, Equinix would benefit from 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.
Also included in the deal is a terrestrial network of more than 1,200 kilometres of reliable terrestrial fibre in Lagos, Edo and Ogun States.
Also is connectivity to terrestrial sites that extend across 65 points of presence (PoPs) in cities across Portugal, Nigeria, Ghana and Cote d’Ivoire.
With the deal, Equinix would also acquire MainOne’s estimated 800+ business-to-business customers, which includes major international technology enterprises, social media companies, global telecommunications operators, financial service companies and cloud service providers.
It further stated that the acquisition would avail Equinix, MainOne’s facilities currently generate approximately $60 million annualized (Q2’21LQA) revenue with a purchase multiple of approximately 14x EBITDA, adding that, Funke Opeke would remain as the CEO of the firm, under the new brand of “MainOne, an Equinix company.”
In December 2021, Equinix announced the impending acquisition of MainOne, with Charles Meyers, President and CEO, of Equinix stating: “The acquisition of MainOne will represent a critical point of entry for Platform Equinix into the expansive and rapidly growing African market.
MainOne’s leading interconnection position and experienced management team represent critical assets in our aspirations to be the leading neutral provider of digital infrastructure in Africa.
The growth of data consumption in Africa is among the fastest in the world, and our customers are looking for a trusted partner to pursue the opportunities presented by broad mobile adoption and greater connectivity across the region.
MainOne’s infrastructure, customer relationships, partner ecosystem and operating capability will extend the reach of Platform Equinix and bolster opportunities for customers in Africa and throughout the world,” Meyers added.
Equinix enables digital leaders to harness a trusted platform to bring together and interconnect the foundational infrastructure that powers their success. Equinix enables today’s businesses to access all the right places, partners, and possibilities they need to accelerate their advantage.
With Equinix, they can scale with agility, speed the launch of digital services, deliver world-class experiences, and multiply their value.
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