International digital infrastructure company, Equinix Inc on Tuesday announced its expansion into Africa through its intended $320m acquisition of MainOne, a leading West African data center and connectivity solutions provider.
CEO, of Equinix, Charles Meyers said in a statement that the acquisition of MainOne, with its presence in Nigeria, Ghana and Côte d’Ivoire, would enable business organisations to accelerate digital transformation throughout Africa.
The CEO said that the acquisition was expected to close in the first quarter of 2022, subject to the satisfaction of customary closing conditions including the requisite regulatory approvals.
Meyers said that the transaction has an enterprise value of US $320m and was expected to be AFFO accretive upon close, excluding integration costs, marking the first step in Equinix’s long-term strategy to become a leading African carrier neutral digital infrastructure company.
The News Agency of Nigeria reports that AFFO accretive is adjusted funds from operations (AFFO), a financial measure used to estimate the value of a real estate investment trust (REIT).
According to him, with more than 200 million people, Nigeria is Africa’s largest economy and, along with Ghana, has become an established data centre hub.
He said that this made the acquisition a pivotal entry point for Equinix into the continent.
"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,’’ Meyers said.
Founder and CEO, MainOne, Funke Opeke said that Equinix would accelerate the company’s long-term vision to grow digital infrastructure investments across Africa.
Opeke appreciated the founding shareholders led by Fola Adeola, MainStreet Technologies, AFC, PAIDF, FBN, Polaris and AfDB for investing in the MainOne vision to bridge the Digital Divide in Africa.
"The MainOne team is excited about the partnership created through the acquisition, and we look forward to building our next chapter together.”