365 Main To Acquire 16 Data Centers From Equinix

San Francisco-based 365 Main has agreed to pay $75 million to acquire the 16 data centers, with about 280,000 square feet of space, from Redwood City, Calif.-based Equinix in a deal expected to close in the fourth quarter of this year.

Once the deal closes, 365 Main will have a total of 21 data centers in operation, with one more still under construction.

[Related: Power, Environmental Concerns Driving Data Center Design ]

Customers in those 16 data centers, as well as the employees serving those customers, will be transferred to 365 Main, the two companies said.

Of the 16 data centers Equinix is selling, nine are in markets the company will no longer serve, including Buffalo, N.Y.; Cleveland, Ohio; Detroit, Mich.; Indianapolis, Ind.; Nashville, Tenn.; Phoenix, Ariz.; Pittsburg, Pa.; St. Louis, Mo.; and Tampa, Fla.

Equinix will retain a presence in cities where the other seven data centers will be sold, including in Chicago, Ill.; Reston, Va.; Dallas, Texas; San Jose, Calif.; Philadelphia, Pa.; Seattle, Wash.; and New York.

Those 16 data centers in early 2010 came to Equinix as part of its $683.4 million acquisition of Switch and Data.

365 Main declined to provide more details about the acquisition before it closes. Equinix did not respond to requests for more information.

However, in a prepared statement, Charles Meyers, president of the Americas for Equinix, said the sale of the 16 data centers allows the company to focus on its largest growth markets.

"We believe the divestiture of these assets will allow us to focus our capital and energy on our most productive data centers and will ensure that customers at these sites will be supported by an experienced data center operator that will continue to invest in these locations," Meyers said in the statement.

For Equinix, the $75 million it receives from 365 Main is pocket change. The company in April reported second fiscal quarter 2012 revenue of $466 million, of which $443 million was recurring revenue. That total revenue was up about 18 percent over the $395 million it reported the previous year.

PUBLISHED SEPT. 5, 2012