Equinix, Inc. (Nasdaq: EQIX), a provider of global data center services, today announced it has entered into an agreement to acquire ancotel GmbH, a leading provider of carrier-neutral colocation and interconnection services in Europe.
With the acquisition of ancotel, Equinix gains one data center in Frankfurt with 2,100 square meters of data center capacity and increases its European network density by adding more than 400 network customers, which includes 200 new networks and 6,000 cross connects.
The acquisition of ancotel, which is expected to close in Q3 2012, will also provide new opportunities for customers, creating a leading, network-dense colocation and connectivity campus in Frankfurt, one of the world's busiest data hubs. The campus will offer a broad mix of networks from Western and Eastern Europe and beyond, and significant growth opportunities for customers looking to expand their data center footprint.
ancotel's assets include edge nodes in Hong Kong, London and Miami, giving Equinix additional points of presence in these markets. In addition, ancotel customers will benefit from the global reach, high-quality data centers and thriving ecosystems of Platform Equinix™ as well as access to its Marketplace of more than 4,000 customers.
"The acquisition of ancotel significantly strengthens Equinix's value proposition and capabilities both in Europe and globally," said Eric Schwartz, president, Equinix EMEA. "Both companies enjoy strong reputations in the market and serve the world's leading companies. The agreement will also grow the total number of network customers available at Equinix from 700 to 900."
"For more than a decade, ancotel's Kleyer90 has been a key point of interconnection for network service providers in Frankfurt and beyond," said K.J. Orth, one of the two founders and managing director of ancotel. "The global reach of Platform Equinix bundled with services such as the Equinix Marketplace and the Equinix Ethernet Exchange will add great value for customers looking to expand in Europe and around the world."
ancotel generated approximately $21.4 million in revenue in 2011, and has been growing at a greater than 20 percent CAGR for the past three years. The valuation paid is in-line with Equinix's current 2012 adjusted EBITDA trading multiple based on projections for the business. The ancotel business will not affect Equinix's global objective to be adjusted free cash flow positive in 2013.