Equinix a California based digital infrastructure company said that it is bidding to buy out MainOne, a West African data centre and connectivity solutions provider with a presence in Nigeria, Ghana, and the Ivory Coast, for the sum of $320 million. The deal is scheduled to be concluded in the first quarter of 2022, pending the fulfilment of customary closing conditions, including the requisite regulatory approvals. Nigeria, with a population of about 200 million people, is Africa’s largest economy and, along with Ghana, has established itself as a data centre powerhouse. Equinix will be able to enter the continent with this acquisition.
Meanwhile Umbrella bodies of Telecom companies in Nigeria, Association of Telecom Companies of Nigeria, ATCON and it’s counterpart, the Association of Licensed Telecom Operators in Nigeria, ALTON, said the development shows Nigerian market is still attractive to foreign investors. According to the terms of the acquisition agreement, Mainone will melt into Equinix by March next year, if the parties satisfy all customary conditions including the regulatory approvals. The terms also stipulate that the management team, including CEO Funke Opeke, will continue to serve in their respective roles. Confirming the sale of Mainone, Opeke said “Equinix will accelerate our long-term vision to grow digital infrastructure investments across Africa. I thank our founding shareholders led by Mr. Fola Adeola, MainStreet Technologies, AFC, PAIDF, FBN, Polaris and AfDB for investing in the MainOne vision to bridge the Digital Divide in Africa.
“With similar values and culture to what we have jointly built in twelve years, Equinix is the preferred partner for our growth journey. The MainOne team is excited about the partnership created through the acquisition, and we look forward to building our next chapter together.” President and CEO, Equinix, Charles Meyers, said: “The acquisition of MainOne will represent a critical point of entry for Platform Equinix into the expansive and rapidly growing African market. MainOne’s leading interconnection position and experienced management team represent critical assets in our aspirations to be the leading neutral provider of digital infrastructure in Africa. Growth of data consumption in Africa is amongst the fastest in the world, and our customers are looking for a trusted partner to pursue the opportunities presented by broad mobile adoption and greater connectivity across the region. MainOne’s infrastructure, customer relationships, partner ecosystem and operating capability will extend the reach of Platform Equinix and bolster opportunities for customers in Africa and throughout the world”.
Equinix’s acquisition of MainOne follows a number of moves made by the global digital infrastructure giant last year, including the $161 million acquisition of GPX India and the $780 million purchase of 13 data centres from Bell Canada. MainOne is one of the most exciting technological companies to come from Africa, according to Equinix. MainOne, founded in 2010 by Funke Opeke, has provided connection for Nigeria’s business community and presently has digital infrastructure assets comprising three operating data centres, with an additional facility under development and due to operate in Q1 2022. It owns and runs a subsea network that stretches from Nigeria to Portugal, as well as a 1,200-kilometer terrestrial fibre network that stretches across southern Nigeria. Upon closing, these facilities will add more than 64,000 gross square feet of space to Equinix, with 570,000 square feet of land for future expansions.
Globally, Equinix has 237 data centres across 27 countries. It also provides data centre and interconnection services for over 10,000 of the world’s leading businesses, including more than 50% of Fortune 500 companies This acquisition will extend Platform Equinix into West Africa, giving organisations based inside and outside of Africa access to one of the world’s fastest-growing markets. Charles Meyers, President and CEO, Equinix said, “The acquisition of MainOne will represent a critical point of entry for Platform Equinix into the expansive and rapidly growing African market. MainOne’s leading interconnection position and experienced management team represent critical assets in our aspirations to be the leading neutral provider of digital infrastructure in Africa. Growth of data consumption in Africa is amongst the fastest in the world, and our customers are looking for a trusted partner to pursue the opportunities presented by broad mobile adoption and greater connectivity across the region. MainOne’s infrastructure, customer relationships, partner ecosystem and operating capability will extend the reach of Platform Equinix and bolster opportunities for customers in Africa and throughout the world.”
