Equinix Completes Acquisition of 29 Data Centers from Verizon

Equinix Completes
Acquisition of 29 Data Centers from Verizon

Deal significantly
scales Americas’ footprint to support interconnection as businesses
increasingly seek to move IT operations to the digital edge

Singapore — May 2, 2017 Equinix,
Inc. (Nasdaq: EQIX), the global interconnection and data center
company, today announced the completion of its acquisition of 29 data centers
and their operations from Verizon Communications Inc. (NYSE, Nasdaq: VZ). The
U.S. $3.6 billion all cash transaction includes over 1,000 customers,
of which over 600 are net new, and approximately three million gross square
feet of data center space, accelerating Equinix’s ability to help companies
extend their IT operations to the digital edge through the interconnection of
people, locations, clouds and data.

The acquisition of these strategic facilities further
broadens Equinix’s capabilities by: strengthening interconnection density on
the Equinix global platform; accelerating business relationships in the
government and energy sectors; and supporting Equinix’s enterprise offering.
Additionally, it adds three new markets
(Bogotá, Culpeper and Houston) and provides additional capacity
and the opportunity for expansion in markets where Equinix currently has a
presence, including Atlanta, Denver, Miami, New York, São
Paulo, Seattle and Silicon Valley.

Spread across 15 cities in North and Latin
America, the new assets bring Equinix’s total global footprint to over 175
International Business Exchange™ (IBX®) data centers across 44 markets and
approximately 17 million gross square feet.

Quotes

§ Steve Smith, CEO,
Equinix

“As the technological shift to digital is
transforming large sections of society and the global economy, companies are
re-architecting their IT infrastructure to thrive in this new environment. They
are moving from traditional centralized infrastructure to a distributed model
that keeps data closer to the customers, partners and employees using it. 
With this significant expansion of Equinix’s globally consistent footprint, our
platform is even more valuable to companies that are leveraging this new model
of interconnection at the digital edge.”

§ Karl Strohmeyer,
President, Americas, Equinix

“Today is an important milestone in the growth of
Equinix, as we significantly expand our operations in the Americas
region.  The 29 new data centers greatly expand our ability to enable
global interconnection within our robust ecosystems, as the economies of North,
Central and South America continue to thrive.  I am especially
thrilled to welcome over 250 new employees and the hundreds of new customers to
the Equinix family.”

Highlights / Key Facts

§ Of the over 1,000
customers in the 29 acquired data centers, more than 600 are net new to
Equinix, including Fortune 1000 companies and federal and local government
entities. Verizon will become a substantially larger customer following the
close of the transaction and will remain a key partner of Equinix.

§ The Miami NAP of the
Americas (“NOTA”) (MI1) facility is a key interconnection point that
will serve as a strategic hub and gateway for Equinix customer deployments
servicing Latin America. As the fourth largest Internet exchange point in the
U.S., it hosts the termination points of 15 subsea cable systems and more than
120 global networks interconnecting to approximately 150 countries. Combined
with the newly acquired data centers in Bogotá and São Paulo, and Equinix’s
substantial existing presence in Brazil, MI1 will strategically position
Equinix in the growing Latin American market.

§ The Culpeper,
Virginia facilities (CU1, CU2, CU3 and CU4) represent one of the most
secure and technologically sophisticated data center campuses in the eastern
U.S. Designed to meet the highest government standards, these IBX data centers
accelerate Equinix’s relationships in the government sector, strengthening
Equinix as a platform of choice for government services and service providers.

§ Approximately 250
Verizon employees, primarily in the operations functions of the 29 acquired
data centers, have become Equinix employees effective today.

§ As of Q1 2017, 83% of
Equinix’s recurring revenue is from customers deployed in multiple metros, many
of whom are looking to reach people, clouds and data at the edge by deploying
at Equinix IBX data centers. With 29 new data centers and their customers, and
the increased interconnection and expansion opportunities this brings, Equinix
is strengthening its global market leadership and creating new opportunities to
grow business ecosystems around the world.

§ In March, Equinix and
Verizon announced an agreement whereby Verizon will exclusively resell Equinix
colocation and interconnection services globally. The agreement enables Verizon
to pair Equinix’s services with Verizon’s security, network and advanced
communications services to enable enterprises to build hybrid cloud solutions
and gain quick access to a multi-cloud environment. [press release]

§ The 29 new IBX data
centers are in 15 metro areas. Equinix plans to tether the new sites to
existing Equinix IBX data centers within metros via Equinix’s industry-leading
interconnection products, thereby expanding Equinix’s core ecosystem value to
customers in the newly acquired sites. The new locations include: 

Additional Resources

·  Equinix Website Landing Page with
Data Center Map, Photos and Additional Transaction Details [website]

·  How the Equinix-Verizon Deal Expands Interconnection Opportunities
Worldwide [blog post]

·  Colocation-Based Interconnection
Will Serve as the ‘Glue’ for Advanced Digital Business Applications [Gartner Report]