Equinix to expand Asian data centre footprint with Japanese acquisition
Tue 8 Sep 2015
Data centre operator Equinix is planning to acquire Japanese outsourcing firm Bit-isle for an all cash transaction of 33.3bn yen – approximately $280mn (£180mn), at 922 yen per share.
The successful acquisition of the Tokyo-based company is expected to leverage Bit-isle’s strong local expertise to further bolster Equinix’s position in Japan and the wider Asia Pacific region, its fastest growing market.
“Bit-isle complements Equinix’s robust cloud and network service provider customer base with their strong Japanese enterprise and system integrator customer base including some of Japan’s largest businesses,” read an Equinix release today.
With its acquisition of Bit-isle, Equinix will become Japan’s fourth largest data centre operator, gaining five facilities in Tokyo and one in Osaka, all within close range of the company’s existing International Business Exchange (IBX) data centres in the country.
On completion of the TY5 facility in the first half of 2016, Equinix will operate a total of ten IBX centres in Tokyo and a further two in Osaka.
Bit-isle’s board of directors has approved the offer, but stipulates that Equinix must acquire at least 75% of the shares. Warehouse Terrada, Kohei Terada and Yasunobu Terada, major shareholders in Bit-isle, have all agreed to tender their shares which represent the outstanding 29.74%.
If the conditions of the offer are met, Equinix will continue with the acquisition under Japanese corporate law and the deal is expected to close early next year.
Tokyo-Mitsubishi Bank has confirmed that it will offer a one-year bridge loan to help fund the acquisition.
“With the acquisition of Bit-isle, Equinix will be in a strong position to attract Japanese enterprises […] Bit-isle’s five data centers are in the best locations in Tokyo. The company’s strong local leadership, business and network operations teams will greatly enhance our strength in this important market and we look forward to bringing them into the Equinix family,” said Equinix president and CEO Steve Smith.