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