VER­I­ZON $3.5BN SALE OF DATA CEN­TRE BUSI­NESS TO EQUINIX IS “IM­MI­NENT”

Capacity - - North America -

Ver­i­zon is on the verge of sell­ing its data cen­tre busi­ness to Equinix in a deal pre­dicted to be worth around $3.5 bil­lion, ac­cord­ing to an­a­lysts.

An in­vestor note from an­a­lysts Cowen & Co claims a Ver­i­zon sale of its colo­ca­tion as­sets is “im­mi­nent” with Equinix front of the queue.

“We be­lieve a trans­ac­tion in­volv­ing Ver­i­zon’s colo­ca­tion as­sets is im­mi­nent and that Equinix is the most likely ac­quirer,” said Cowen an­a­lyst Colby Sy­ne­sael.

“Based on our chan­nel checks, we be­lieve the port­fo­lio in­cludes 14 fa­cil­i­ties which pri­mar­ily in­clude those Ver­i­zon in­her­ited when it bought Ter­re­mark in 2011. Equinix could pay 13 to 13.5 times EBITDA, or $3.5 bil­lion.”

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