MainOne will be acquired by the American company Equinix for $320 million
MainOne will be acquired by the American company Equinix for $320 million
MainOne, a leading provider of cable and data center services in Nigeria and West Africa, is in the process of being acquired by Equinix, a leading provider of internet infrastructure in the United States. This acquisition will make it easier for Equinix to expand into the African telecommunications and data markets.
According to a press release from Equinix, the transaction, which has an enterprise value of $320 million, is expected to close in the first quarter of 2022, subject to the satisfaction of customary closing conditions, which include regulatory approval.
In an interview with Technext, a representative from MainOne Public Relations confirmed the development but insisted that the information on his desk at the time was extremely limited. The fact that it would be a complete buyout was stated by him, however.
In 2010, Nigerian entrepreneur Funke Opeke launched the company MainOne. In southern Nigeria, the company currently owns and operates 1,200 kilometers of reliable terrestrial fiber networks, which it uses for data transmission. Additional assets include an extensive submarine network that runs from Nigeria to Portugal and is owned and operated by the company.
Additionally, it owns digital infrastructure assets, which include three operational data centers located throughout West Africa, with a fourth data center currently under construction and scheduled to open in the first quarter of 2022. Through these facilities, the company has made it possible for the Nigerian business community to be more connected.
MainOne is considered one of the most exciting technology businesses in Africa by Equinix as a result of this assessment. Charles Meyers, the president and CEO of the multinational company based in California, stated that the acquisition of MainOne would be the first step in the company's long-term strategy to establish itself as a leading African carrier-neutral digital infrastructure company.
It was pointed out that Africa's data consumption growth is among the fastest in the world, and MainOne's infrastructure, customer relationships, partner ecosystem, and operational capability will assist Equinix in expanding its reach and expanding opportunities for customers in Africa and around the world. He concluded by saying that
Equinix will acquire MainOne and all of its assets in an all-cash transaction valued at US$320 million. MainOne is a provider of cloud computing services. This transaction, excluding integration costs, should be AFFO accretive upon closing, according to the company.
Aside from that, it was agreed that all current members of the management team, including CEO Funke Opeke, would retain their positions. While Equinix will acquire MainOne's nearly 500 employees as part of the deal, it is unclear what will happen to them as a result of the new arrangement.
Along with MaineOne's approximately 64,000 gross square feet of space, Equinix will acquire 570,000 square feet of land that will be used for future expansions. Additionally, the agreement includes a vast submarine network that stretches for 7,000 kilometers from Portugal to Lagos, Accra, and the west African coast, with landing stations in Nigeria, Ghana, and Côte d'Ivoire, among other locations.
MainOne's terrestrial network in Lagos, Edo, and Ogun States, as well as over 800 business-to-business customers, will be acquired as part of the transaction. These customers include major international technology enterprises, social media companies, global telecommunications operators, financial service providers, and cloud service providers, among others.
Chief executive officer of MainOne, Funke Opeke, believes that the acquisition will assist the company in accelerating its long-term strategy of increasing digital infrastructure investment across Africa.
Over 10,000 of the world's leading businesses, including more than half of the Fortune 500, rely on Equinix's 237 data centers in 65 metro areas and 27 countries. Equinix operates 237 data centers in 65 metro areas and 27 countries.
