Equinix announced the acquisition of the India operations of GPX Global Systems in a cash deal for $161 million.
The deal represents a multiple of approximately 15x the projected EBITDA at full utilization. The acquisition is expected to close in the first quarter of 2021, subject to customary closing conditions including regulatory approval.
Charles Meyers, president and CEO of Equinix, said: “The acquisition of GPX’s business in India means we are able to make a giant leap forward in terms of growing our ecosystem in India.”
The acquisition will enable Equinix India with the addition of two interconnected data centers located in Mumbai.
The two data centers have more than 1,350 cabinets, with an additional 500 cabinets at full buildout. The facilities will add more than 90,000 square feet of colocation space to Platform Equinix when fully built.
Equinix customers will have access to two data centers with more than 200 international brands and local companies, including cloud service providers (CSPs), networks, content delivery network (CDN) providers, all local carriers, 130 internet service providers (ISPs) and four internet exchanges.
GPX India offers access to cloud services, including Amazon Direct Connect, Google Cloud Dedicated Interconnect and Oracle Cloud Infrastructure FastConnect.
GPX India facilities host key internet exchanges such as Mumbai IX-DECIX, AMS-IX India, Extreme IX and Bharat IX, allowing ISPs, carriers, CDNs and large enterprises to exchange internet traffic.
Equinix has more than 210 data centers across 56 metros and 26 countries, providing data center and interconnection services for over 9,500 of the world’s leading businesses, including more than 50 percent of Fortune 500 companies.
Equinix operates 46 IBX data centers in Asia-Pacific across 13 metros in Australia, China, Hong Kong, Indonesia, Osaka, Seoul, Singapore and Tokyo.
John Dinsdale, research director at Synergy Research Group, said: “The data center market in India is expected to exceed S$1 billion in 2020 and grow at 12 percent compound annual growth rate (CAGR) from 2019-2024, the third highest rate in the world. Our forecasts show that the country will become the seventh largest data center market in the world in 2021.”