Equinix (Nasdaq: EQIX), a provider of global data center services, yesterday announced it has completed the acquisition of Hong Kong-based data center provider Asia Tone in an all cash transaction valued at $230.5 million.
The acquisition of Asia Tone further strengthens Equinix's position in Asia-Pacific—the company's fastest growing region—and increases its presence in Shanghai to support growing demand from multinational customers looking to expand in China.
With the acquisition of Asia Tone, Equinix now has a footprint of 105 data centers located in 38 markets around the world. Equinix gains a total of six data centers and one disaster recovery center located across three key markets — Hong Kong, Shanghai and Singapore.
This includes one data center under construction in Shanghai which will be built in three phases and will provide an additional capacity of 80,000 square feet and approximately 900 cabinets when completed. The first phase will be completed in Q3 2012. As one of fastest growing colocation markets in the world, China is the most requested market for Equinix customers looking to expand globally. Equinix plans to offer premium colocation services in China.
"With the acquisition of Asia Tone, Equinix is in a strong position to establish market leadership in Asia-Pacific," said Steve Smith, president and CEO of Equinix. "As our fastest growing region and one in high demand by customers, we see a tremendous opportunity to continue our track record of growth in Asia-Pacific. With our increased footprint in China and growing capacity in Shanghai, we are well-positioned to meet demand from multi-national customers looking to expand in this high-growth market."
Asia Tone is among the leading data center service providers in Asia-Pacific, and serves more than 80 customers across the region, approximately one-third are existing Equinix customers. Equinix will integrate Asia Tone business operations, staff and customer base and will ensure that the data centers meet Equinix standards for operational and customer service excellence.