Equinix to Acquire Nigeria’s MainOne for $320 Million
Equinix, Inc. (Nasdaq: EQIX), the world’s digital infrastructure company™, today announced its expansion into Africa through its intended acquisition of MainOne, a leading West African data centre and connectivity solutions provider, with a presence in Nigeria, Ghana and Côte d’Ivoire.
According to the company, the acquisition is expected to close in Q1 of 2022, subject to the satisfaction of customary closing conditions including the requisite regulatory approvals.
It said the transaction has an enterprise value of US $320 million and is expected to be adjusted fund from operations (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.
With more than 200 million people, Nigeria is Africa’s largest economy and, along with Ghana, has become an established data centre hub. This makes the acquisition a pivotal entry point for Equinix into the continent. Equinix believes MainOne to be one of the most exciting technology businesses to emerge from Africa.
Founded by Funke Opeke in 2010, the company has enabled connectivity for the business community of Nigeria and now has digital infrastructure assets including three operational data centres, 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. MainOne owns and operates a subsea network from Nigeria to Portugal, as well as 1,200 kilometres of reliable terrestrial fibre networks across southern Nigeria.
They 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”, the company said.
Commenting, Charles Meyers, President and CEO, Equinix said, “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.
“Growth of data consumption in Africa is amongst the fastest in the world, and our customers are looking for a trusted partner to pursue the opportunities presented by broad mobile adoption and greater connectivity across the region.
“MainOne’s infrastructure, customer relationships, partner ecosystem and operating capability will extend the reach of Platform Equinix and bolster opportunities for customers in Africa and throughout the world.”
Under the terms of the transaction, the management team, including CEO Funke Opeke, will continue to serve in their respective roles, the statement reads.
Key Facts
Under the terms of the agreement, Equinix intends to acquire MainOne and its assets with an all-cash transaction at an enterprise value of US$320 million, which is expected to be AFFO accretive upon close, excluding integration costs, Equinix said.
It reveals that the transaction is expected to close in Q1 of 2022, subject to the satisfaction of customary closing conditions including the requisite regulatory approvals.
MainOne’s assets include three operational data centres, with an additional facility under construction expected to open in Q1 2022, it added.
The management said these facilities will add more than 64,000 gross square feet of space to Platform Equinix, in addition to 570,000 square feet of land for future expansions.
An extensive submarine network extending 7,000 kilometres from Portugal to Lagos, Accra and along the West African coast, with landing stations in Nigeria, Ghana and Côte d’Ivoire.
A terrestrial network of more than 1,200 kilometres of reliable terrestrial fibre in Lagos, Edo and Ogun States. Connectivity to terrestrial sites extends across 65 PoPs (points of presence) in cities across Portugal, Nigeria, Ghana and Cote d’Ivoire.
Access to key internet exchanges enables low latency to key global networks, including Amazon, Microsoft, Apple, Google and Facebook.
An estimated 800+ business-to-business customers, including major international technology enterprises, social media companies, global telecommunications operators, financial service companies and cloud service providers.
Nearly 500 employees and a management team with a deep understanding of local and international markets.
The facilities generate approximately US$60 million annualized revenue with a purchase multiple of approximately 14x earnings before interest tax depreciation and amortisation (EBITDA).
Globally, Platform Equinix is comprised of 237 data centres across 65 metros and 27 countries, providing data centre and interconnection services for over 10,000 of the world’s leading businesses, including more than 50% of Fortune 500 companies.
Also commenting, John Dinsdale, Chief Analyst & Research Director, Synergy Research Group said, “Africa has been the missing piece in the Equinix jigsaw, and this acquisition of MainOne will be a great first step onto the continent. The demand for data centre services in Africa is strong, with Nigeria at the epicentre of exponential economic growth in West Africa.
“Nigeria is Africa’s largest country by both population and economy, and its growth drivers include rapid mobile adoption, increased data consumption from its young population, good subsea and terrestrial connectivity, and a strong enterprise market.
“This is advancing the region toward a more digitalized economy and driving data centre growth and expansion to provide much-needed digital infrastructure.”
Funke Opeke, Founder and CEO of, MainOne then said, “Equinix will accelerate our long-term vision to grow digital infrastructure investments across Africa.
“I thank our founding shareholders led by Mr. Fola Adeola, Mainstreet Technologies, AFC, PAIDF, FBN, Polaris and AfDB for investing in the MainOne vision to bridge the Digital Divide in Africa.
“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.”
Eugene Bergen, President, EMEA, Equinix said, “Expansion in Africa has long been a strategic priority for us. With MainOne, we have found a company that not only has a highly complementary data centre and connectivity assets but can further accelerate the expansion of our business model and growth objectives.
CEO Funke Opeke and her team have built a powerful and dynamic infrastructure that will enable international customers’ access to the continent and African organizations access to the global Equinix platform.
“Customers can take full advantage of Equinix’s leading global interconnection services to connect with customers and partners, participate in rich digital ecosystems and expand their business across Africa and around the world.” #Equinix to Acquire Nigeria’s MainOne for $320 Million
