Equinix acquires Nigeria’s MainOne for $320 million
Equinix Incorporated, a multinational and one of the world’s largest digital infrastructure companies, has decided to expand into the African market, with the acquisition of MainOne, a telecommunications service provider for $320 million.
MainOne flaunts to be West Africa’s leading data center and connectivity solutions provider with presence in Nigeria, Ghana, and Côte d’Ivoire.
The firm provides services to major telecom operators, ISPs, government agencies, small to large enterprises, and educational institutions.
According to a statement by Equinix, the completion of this acquisition augments Equinix’s long-term strategy to become a leading African carrier-neutral digital infrastructure company by being able to bring a full range of transformative technologies and connectivity to Nigeria, Ghana and Cote d’Ivoire.
The acquisition is expected to extend Equinix’s reach in the African market, giving the organization a base inside and outside of Africa, with access to global and regional markets.
Equinix is expected to gain from this acquisition as it opens the multinational to a wide market with active customer base. Nigeria, for example, has both the largest population and the largest economy of any country in Africa, with approximately 142 million active internet subscribers.
Nigeria is also home to new innovative digital ecosystems in fintech, content and digital media, and has great opportunity for expansion of digital services. Due to the fact that MainOne’s headquarters is at the heart of the country, Lagos, the firm stands to generate revenue and ultimately grow from a technologically driven economy.
Equinix will also be getting MainOne’s estimated 800+ business-to-business customers, which includes major international technology enterprises, social media companies, global telecommunications operators, financial service companies and cloud service providers.
The press release also revealed that MainOne’s facilities currently generate approximately $60 million annualized (Q2’21LQA) revenue with a purchase multiple of approximately 14x EBITDA.
The acquisition of MainOne marks the latest in a series of strategic acquisitions for the world’s digital infrastructure company.
Nairametrics
