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Equinix Completes $800M Acquisition of Infomart Dallas

ASB Sells Iconic Dallas Data Center Campus Near Downtown
April 3, 2018
Global data center provider Equinix Inc. (Nasdaq: EQIX) has completed its previously announced $800 million acquisition, of the 1.6 million-square-foot Infomart Dallas data center near downtown Dallas.

The $800 million debt and cash deal, which closed on April 2 after being announced in February, transfers the ownership to Redwood, CA-based Equinix from Washington, D.C.-based ASB Real Estate Investments upon the completion of a 36-month payout following the deal closing. It includes the data center’s multiple fiber entry points and more than 50 tenants, including colocation providers, office tenants and networks.

The acquisition also broadens Equinix’s global platform and secures expansion space in the Dallas-Fort Worth market - one of the top data center markets in the United States - adjacent to the Infomart building at 1950 N. Stemmons Freeway.

Last year, the Infomart Dallas building generated about $50 million in revenue, with about $20 million of that cash tied to rent and maintenance recoveries from Equinix. The data center provider expects the massive acquisition to break-even one year after closing the deal.

The Dallas metro area has long been a major internet and network exchange point, and a major communications hub in the southern United States, said Karl Strohmeyer, president of the Americas for Equinix.

The addition of the Infomart Dallas to Equinix’s portfolio supports "our ongoing global expansion while enabling the U.S. digital economy," he added.

According to 451 Research’s latest report on the multi-tenant data center market in Dallas, analysts forecasted an 11 percent compound annual growth rate for data center capacity in the Dallas market from 2013 through 2019.

The demand is tied to a steady increase in enterprises locating regional and national headquarters in the region, analysts with the research group say, as well as coastal companies seeking a central location in the U.S. with high connectivity and a low cost of operations in housing data.

Officials with Equinix say they also see opportunity in Dallas being a major connection point between the United States and Central and South America, and plan to serve a growing demand from companies searching for a data safe haven in the proven data center market.

With the completion of the deal, the 28 Infomart Dallas employees will become either employees or contractors of Equinix. ASB sold the Dallas data center property on behalf of its Allegiance Fund core real estate investment vehicle.

For more information on this transaction please, see CoStar Comp #4197159.

Candace Carlisle, Dallas-Fort Worth Reporter  CoStar Group   
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