Equinix to buy Metronode for $1 billion

Global data centre giant Equinix has revealed plans to acquire Australian data centre operator Metronode for $1 billion in cash.

The deal is expected to close in the first half of 2018 but is still subject to closing conditions and regulatory approval.

The acquisition will expand Equinix' data centre footprint in Australia to 15, with the addition of Metronode's 10 data centres, which includes two in Melbourne, three in the greater Sydney area, two in Perth, and one in Canberra, Adelaide and Brisbane.

Metronode's most well-known customer is the New South Wales government, which houses its GovDC ICT marketplace in Metronode's two facilities in Unanderra and Silverwater.

Metronode reported $60 million in revenue in the 12 months ending 30 September 2017, according to Equinix.

Equinix currently runs five data centres in Australia – four in Sydney and one in Melbourne. The company said that several of the acquired assets would provide it with the opportunity to build out additional capacity in the capital cities, as well as provide diverse second campus locations for its existing Sydney and Melbourne data centre locations.

“As well as expanding our national footprint with Metronode’s existing sites, this acquisition also enables us to build out sites that are currently in development to further expand our presence in Australia," Equinix Australia managing director Jeremy Deutsch said.

"This will enable us to continue to deliver the level of excellence and interconnection that our customers expect, and signifies our commitment to the region in supporting the growth of digital businesses. We look forward to welcoming the Metronode team into the Equinix family.”

Metronode chief executive David Yuile said: “With this acquisition, companies operating across Australia will have access to the largest network of highly interconnected data centres in the world. Metronode is excited to become part of an industry-leading company and further help our customers to build their digital infrastructure and drive competitive advantage in the digital age.”