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Equinix, Inc., a provider of global data center services, has reportedly signed a definitive agreement to acquire Switch & Data Facilities Company, Inc., a provider of data center and Internet exchange services, in a transaction valued at approximately $689 million.

 

Company officials said that the combined expertise of both companies is believed to further strengthen Equinix’s (News - Alert) leadership position in the global data center services market by extending the company’s presence to 16 new markets across North America. Upon completion of the acquisition, Equinix will integrate Switch and Data’s (News - Alert) data center business and operations, including the company’s 34 data centers in 22 markets in the U.S. and Canada.

 

The acquisition is said to add more than one million gross square feet of data center capacity, bringing Equinix’s total global footprint to 79 data centers in 34 markets and more than six million square feet across the North American, European and Asia-Pacific markets. Moreover, the deal will allow Equinix to expand into new strategic markets, including Atlanta, Denver, Miami, Seattle and Toronto, as well as provide a platform for future expansion of Switch and Data assets, company officials said.

 

“The strategic acquisition of Switch and Data by Equinix further strengthens Equinix’s position as the most comprehensive global data center services provider across North America, Asia-Pacific and Europe,” said Steve Smith, president and CEO at Equinix.

 

“Our complementary business models, coupled with Switch and Data’s broad North American market coverage, provide a platform for strong growth as well as an opportunity to accommodate our customers’ demands for additional services,” added Smith.

 

Alternatively, the transaction is expected to give Equinix customers broader access to local markets for their network edge deployments, and Switch and Data customers a comprehensive solution to their global data center needs. Both the companies believe that their customers will benefit from a stronger product portfolio and capacity pipeline in a market.

 

“For more than a decade, Switch and Data has provided colocation and data center services to support the needs of the world’s leading online brands,” said Keith Olsen (News - Alert), president and CEO at Switch and Data.

 

“These businesses rely on Switch and Data to provide secure locations for them to connect and safeguard their mission-critical applications. The combination of Switch and Data’s North American site footprint and Equinix’s global reach will increase our addressable market, enhance our customers’ value, and drive incremental value to our stockholders,” added Olsen.

 

Reportedly, both the companies are targeting to complete the transaction in the first quarter of 2010. The transaction will be subject to customary closing conditions, including the approval of Switch and Data’s stockholders and regulatory approvals.