Equinix acquires GPX India for $161 million
2 min read . Updated: 11 Aug 2020, 06:30 PM ISTThe acquisition is expected to close in Q1 2021, subject to customary closing conditions including regulatory approval
Global interconnection and data center company Equinix, Inc. today announced the acquisition of the India operations of GPX Global Systems, Inc in an all-cash transaction value of $161 million. The acquisition is expected to close in Q1 2021, subject to customary closing conditions including regulatory approval.
The acquisition includes two highly interconnected data centers, comprising over 200 international brands and local companies, including the world's leading cloud service providers (CSPs), leading networks, content delivery network (CDN) providers, all local carriers, 130 internet service providers (ISPs) and four internet exchanges. Both data centers are strategically located in Mumbai, home to the critical IT infrastructure of numerous global organizations and with international connectivity serviced by subsea cables at landing sites located nearby. The facilities will add more than 90,000 square feet of colocation space to Platform Equinix when fully built.
Globally, Platform Equinix comprises more than 210 data centers across 56 metros and 26 countries, providing data center and interconnection services for over 9,500 of businesses. Currently, it operates 46 international business exchange (IBX) data centers in Asia-Pacific across 13 metros in Australia, China, Hong Kong, Indonesia, Osaka, Seoul, Singapore and Tokyo.
Charles Meyers, President and CEO, Equinix said, "India represents the second largest internet user base in the world, with consumption expected to grow with the continued advancement of internet infrastructure, smartphone ownership and the penetration of 4G and 5GThe acquisition of GPX's business in India means we are able to make a giant leap forward in terms of growing our ecosystem in India, and gives us a solid foundation for rapid growth and expansion in the country."
GPX India offers a cloud dense environment and access to major cloud services, including Amazon Direct Connect, Google Cloud Dedicated Interconnect and Oracle Cloud Infrastructure FastConnect. GPX India facilities also host key internet exchanges such as Mumbai IX-DECIX, AMS-IX India, Extreme IX and Bharat IX, allowing ISPs, carriers, CDNs and large enterprises to exchange internet traffic
According to McKinsey, core digital sectors in India, such as IT and digital communication services, are projected to double in size by 2025 to contribute $355-435 billion to GDP. To further address the proliferation of digitization of the country, this acquisition will allow Equinix to support its existing network, content, cloud and enterprise customers looking to expand in this rapidly.
Manoj Paul, Managing Director, GPX Global Systems, India Ltd said, " The appetite from global companies for expansion into India is matched by local interest in expanding overseas. This creates a thriving marketplace and by integrating our data centers with Platform Equinix, our customers will have access to a global interconnection platform that can accelerate their business and connect them with customers and partners across the world."
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