In a stunning move Equinix has announced the agreed acquisition of local colocation rival Switch and Data for USD$689m.  S+D were probably Equinix’s largest single competitor in the carrier neutral colocation market and the acquisition marks an interesting concentration of power in this specialist market niche.   It can certainly be seen as a case of the strong getting stronger.

Implications for European Operators and Market

Equinix acquired IXEurope in June 2007 to complement its presence in the US and Asian markets but the remaining pan-European operators, Telecity and Interxion must have viewed today’s move with some interest.  Telecity of course listed on the London Stock Exchange in October 2007 whilst Interxion is still privately held. 

Certainly Equinix’s European footprint is focussed on the four key markets of London, Paris, Amsterdam and Frankfurt as well as a dominant position in the Swiss market, but the other operators offer a greater spread including markets such as Scandinavia, Iberia and others such as Austria or Italy. 

Other Points

• Interesting to note revenues per cabinet at USD$1261 per month at Equinix and $1796 at S+D. 
• Equinix quote Gartner figures estimating the North American Web Hosting market will grow at a compound 19% over the next four years.  They are also keen to point out there are over 350 companies providing Internet data centre services in the North American market. 

One Response to “Equinix acquires Switch and Data to enhance market position”

1. Telecity shares surge 10% on bid talk rumours | The Colocation Exchange says:

   October 15, 2010 at 11:47 am

   [...] acquired their nearest US rival Switch and Data in a deal costing US$689m or £445m, but do see our note on this back in October 2009 when we floated the idea that if Equinix felt able to buy their nearest [...]