In a deal announced on December 6, Verizon is selling 24 of its data center sites to Equinix for $3.6 billion. The move is part of a continuing re-alignment at Verizon as the company focuses on areas it considers to be growth businesses.
Equinix in total will acquire 29 data center buildings, which include 24 Verizon customer-facing data sites. The deal is expected to close in mid-2017.
While Verizon is selling 24 sites, it remains committed to its cloud and managed hosting business. Verizon will continue to operate its hosting and cloud business through 27 data center sites in Canada, Europe and Asia-Pacific that it will still own after the Equinix transaction closes.
In a letter to customers, Steve Smith, Chief Executive Officer and President at Equinix, commented that the Verizon data center acquisition will give his company expanded access in 15 metro markets in North and Latin America.
"They expand our coverage to new markets such as Bogotá, Culpeper and Houston, and they add a total of more than two million gross square feet of colocation capacity across these and existing key markets for Equinix, including Atlanta, Denver, Miami, New York, São Paulo, Seattle and Silicon Valley," Smith said. "The acquisition of these new data centers and customers also significantly increases the size and sophistication of our enterprise and government ecosystems."
Miami's NAP of the Americas Included in the Deal
Among the facilities that Equinix is acquiring is Verizon's Miami Network Access Point (NAP), which is know as the NAP of the Americas (NOTA). NOTA is a key transit point for data between the U.S and Latin America, as well as being an interconnection point for 90 global networks. Additionally, NOTA is a termination point for 15 sub-sea internet communication cables.
Equinix will also bring in approximately 250 employees from Verizon as part of the deal. Additionally, the Verizon data centers Equinix is acquiring support approximately 900 customers.
"Given both Equinix and Verizon’s experience in the industry and their reach to large Enterprise and service providers, there will be a number of common customers," an FAQ on the deal states. "Both companies believe our customers will view the transaction favorably and will be pleased that a company such as Equinix will be carrying on Verizon’s excellent operational track record."
Sean Michael Kerner is a senior editor at ServerWatch and InternetNews.com. Follow him on Twitter @TechJournalist