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>>> Equinix Eyes Expansion in India With GPX India Acquisition


Zacks

August 12, 2020


https://finance.yahoo.com/news/equinix-eyes-expansion-india-gpx-125112637.html


Equinix, Inc. EQIX extended Platform Equinix to India, with the $161-million acquisition of GPX Global Systems, Inc.’s Indian operations — GPX India — consisting of two highly-interconnected data centers.

The transaction value indicates a multiple of nearly 15X the estimated EBITDA at full utilization. Moreover, this all-cash deal is anticipated to close in first-quarter 2021, subject to customary closing norms, including regulatory approval.

Through the acquisition, Equinix will add a fiber-connected campus, consisting of two data centers located in Mumbai. The campus has more than 1,350 cabinets, with a provision to add another 500 cabinets at full build-out. At full built, the campus will add more than 90,000 square feet of colocation space to Platform Equinix.

Moreover, the strategic location of the data centers in Mumbai will likely enable the company to enjoy robust demand and leasing activity. This is because the city is a domain for important IT infrastructure of numerous global companies and has international connectivity serviced by subsea cables at close landing sites.

Per management, core digital sectors in India like IT and digital communication services are estimated to double in size by 2025 and will account for $355-$435 billion to GDP. Hence, given this massive proliferation of digitization in the country, the buyout is a strategic fit.

It will provide a platform for Equinix’s existing network, content, cloud and enterprise customers that are looking to expand in the dynamic market. The expansion will aid local companies to advance digital transformations by deploying their infrastructures, applications and services closer to the edge on the back of Equinix’s global-interconnected platform of more than 210 International Business Exchange data centers.

Over the past year, shares of this Zacks Rank #3 (Hold) company have gained 38.2% as against the real estate market’s decline of 11.1%.

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