Equinix Acquires GPX to Expand its Presence in India



Equinix Acquires GPX to Expand its Presence in India

Equinix, Inc., the California-based American multinational company and the global interconnection & Data Center Company, announced its expansion into India through the acquisition of the India operations of GPX Global Systems, Inc., a technology leader. The all-cash transaction value of $161 million represents a multiple of approximately 15x the projected EBITDA at full utilization. The acquisition by Equinix is expected to close in Q1 2021.

The acquisition will extend Platform Equinix to India with the addition of two world-class, highly interconnected data centers, providing a platform for additional expansion across the country. Equinix customers will have access to a network-dense data center campus with more than 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 of the data centers are located in Mumbai, which is the home to the critical IT infrastructure of numerous global organizations and with international connectivity serviced by subsea cables at landing sites located nearby.

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 growing market. The expansion will also help local companies accelerate their digital transformation journeys by deploying their infrastructures, applications and services closer to the edge through the globally interconnected platform of more than 210 International Business ExchangeTM (IBX) data centers.

“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 5G. Extending Platform Equinix to India has long been a strategic objective for Equinix and we are excited that the GPX transaction will allow us to capitalize on this market opportunity and meet the needs of our customers as they seek to expand their digital businesses. The 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. This acquisition follows the recent announcement of our planned expansion in Canada and is a testament to our continued focus on expanding our global reach as companies continue to view interconnection at the digital edge as a business imperative,” says Charles Meyers, President & CEO, Equinix.

“We are excited that this acquisition will enable us to join a global leader in the interconnection and data center industry that’s fully aligned with our value proposition. This acquisition will allow our customers to expand across the region and globally via Platform Equinix. Equinix has been highly successful with enterprises worldwide, the segment which is complementary with our existing customer base of carriers, content and cloud service providers. 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,” says Manoj Paul, Managing Director, GPX India Pvt Ltd.