California-headquartered Equinix is buying MainOne, a data center and connectivity solutions provider with operations in Nigeria, Ghana, and Côte d’Ivoire, in an all-cash deal. The deal values MainOne at $320 million and gives the 10-year-old firm’s founding investors which include Harith‘s Pan African Infrastructure Fund, Africa Finance Corporation, FBN Capital, Polaris, and the African Development Bank, exits from the business. Details of the likely returns enjoyed by the investors have not been made available.
Equinix is paying approximately 14X EBITDA for MainOne, which the company reports will generate $60 million in revenue this year. The deal gives Equinix its first foothold in Africa which is one of the fastest-growing markets for digital data in the world. In acquiring MainOne, the business will own 3 operational data centers, a new data center projected to be completed in the first quarter of next year, a 7,000-kilometer submarine network connecting Portugal to Nigeria, Ghana, and Côte d’Ivoire, a 1,200-kilometer terrestrial fiber network in Nigeria, and a clients base of more than 800 B2B customers made up of major international technology enterprises, social media companies, global telecommunications operators, financial service companies and cloud service providers.
To read this article, you must be a paid subscription member. (Current members login here
Reserve your digital subscription today
Join now for $35 per month
Join now for $395 per year
for access to:
- Weekly newsletter with original and curated news, analysis and perspective
- Africa’s private capital deals, fund raises and the investment firms and executives involved
- Portfolio company news that impacts value and stakeholder participation
- Job moves and partnerships between leading market participants
- Exclusive access to Africa Capital Digest’s full content archive
If you’d like more information on exceptional value group subscriptions for your colleagues and teams, please contact Teresa Hall at thall[at]africacapitaldigest.com today.