Equinix buys MainOne in all cash deal

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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.

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