Data centre service provider Equinix has agreed to acquire Hong Kong-based rival Asia Tone in a deal which will net the firm five existing data centres, a disaster recovery centre, and one data centre still under construction.
The US$230.5 million cash deal is for seven properties across Hong Kong, Shanghai and Singapore and is expected to close in the third quarter. Once secured, the centres will become part of platform Equinix. Currently under construction and expected to be completed in the second half of 2012, a new facility in Shanghai will provide additional capacity of 80,000 square feet of data centre space.
“The acquisition of Asia Tone will be an important milestone in establishing market leadership for Equinix in Asia-Pacific,” said Steve Smith, president and CEO of Equinix. “As our fastest-growing region for several years and one in high demand by customers, we see tremendous opportunity for growth. We are especially pleased to expand our footprint in China, which is highly desirable for multi-national customers looking to expand into this high-growth market.”
Asia Tone generated approximately US$30 million in revenue in 2011 and has been growing at a greater than 50% compound annual growth rate for the past three years. A recent report by business development consultancy Frost & Sullivan estimated the Asia-Pacific data centre market could grow to US$9.25 billion by 2017 from US$2.55 billion in 2010.