U.S Based Equinix set to acquire Nigeria’s MainOne in a $320 million deal

US-based digital infrastructure company, Equinix, has announced its expansion into Africa through its planned acquisition of MainOne, a leading West African data center and connectivity solutions provider, with a presence in Nigeria, Ghana, and Côte d’Ivoire.

The acquisition is expected to close by the first quarter of 2022, subject to the satisfaction of customary closing conditions including the requisite regulatory approvals.

According to a press statement by Equinix, the deal has an enterprise value of $320M and is 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.

MainOne was founded in 2010 by Funke Opeke, the company has enabled connectivity for the business community of Nigeria and now has digital infrastructure assets including three operational data centers, with an additional facility under construction expected to open in Q1 2022. Upon closing, these facilities will add more than 64,000 gross square feet of space to Platform Equinix, with 570,000 square feet of land for future expansions.

Equinix believes MainOne to be one of the most exciting technology businesses to emerge from Africa. With more than 200 million people, Nigeria is Africa’s largest economy and, along with Ghana, has become an established data center hub. This makes 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,” Charles Meyers, President, and CEO of Equinix said.

The CEO noted that the growth of data consumption in the continent is amongst the fastest in the world, and MainOne’s MainOne’s infrastructure, customer relationships, partner ecosystem, and operating capability will extend the reach of Platform Equinix and bolster opportunities for customers in Africa.

MainOne owns and operates a subsea network from Nigeria to Portugal, as well as 1,200 kilometers of reliable terrestrial fiber networks across southern Nigeria. These are all improving connectivity to and from Europe, West African countries, and the major business communities in Nigeria. When completed, this acquisition will extend Platform Equinix into West Africa, giving organizations based inside and outside of Africa access to one of the world’s fastest-growing markets.

Under the terms of the transaction, the management team, including CEO Funke Opeke, will continue to serve in their respective roles. Equinix will also assume possession of MaineOne’s more than 64,000 gross square feet space in addition to 570,000 square feet of land for future expansions. Also part of the deal is an extensive submarine network extending 7,000 kilometers from Portugal to Lagos, Accra and along the west African coast, with landing stations in Nigeria, Ghana, and Côte d’Ivoire.

“Equinix will accelerate our long-term vision to grow digital infrastructure investments across Africa,” Funke Opeke, Founder and CEO of MainOne said. “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.”

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