Equinix Inc., an interconnection and data centre company based in the United States, will enter the Indian market through the acquisition of the domestic arm of GPX Global Systems Inc.
The value of the all-cash transaction is $161 million (Rs 1,202 crore), Equinix said in a statement. The deal is expected to be completed by the first quarter of next year, subject to customary closing and regulatory conditions.
Equinix Asia-Pacific president Jeremy Deutsch said that the move will provide enterprises with infrastructure required for growing trends in the space including hybrid multi-cloud and digitisation, as well as digital business transformation.
JPMorgan, Cyril Amarchand Mangaldas and Deloitte India acted as the advisers to Equinix on this transaction.
This acquisition will see Equinix take over two Mumbai-based data centres, adding a total of 1,350 cabinets to its capacity.
GPX India also has an interconnection solution that enables customers to connect multiple cloud platforms. Its facilities also host internet exchanges including Mumbai IX-DECIX, AMS-IX India, Extreme IX, and Bharat IX.
Equinix, set up in 1998, is headquartered in California and provides services including network virtualisation, managed services, secure key management, and global solutions enablement.
The company is listed on the Nasdaq. Its shares closed trading on Monday 1.13% down at $782.74 apiece.
Its acquisition of GPX’s Mumbai data centres represents continued strategic interest in enterprise and cloud-focussed segments.
IT services major Cognizant – listed on the Nasdaq as well – has been one of the most active buyers, having struck at least five acquisitions this year alone.
Its latest came last month, when it acquired New Signature, a firm that specialises in Microsoft-focussed public cloud business transformations.
Last month, Wipro said that it would fully acquire Brazilian IT company IVIA Servicos de Informatica Ltda for $22.4 million (about Rs 170 crore). The acquisition came just six weeks after Wipro announced that Thierry Delaporte would be appointed as its new managing director and CEO.