Equinix Inc stands as a global data and interconnection company. As part of its plans to expand into India, the company announced on Tuesday that it had acquired GPX Global Systems Inc’s India operations. They acquired the India arm by way of a deal worth $161 million.
Acquiring GPX India
GPX India was acquired by Equinix through an all-cash transaction, expanding into India by the acquired company’s platform. The deal’s size, in question, stands to represent about 15 times the projected EBITDA when used at full utilization. This comes with the company’s statement today.
The acquisition itself is expected to reach its close within the first quarter of the coming year. As is the case with any such acquisition, it still stands subject to some customary closing conditions, as well as regulatory approval.
Expanding Into New Territory
With this new acquisition coming into play, the Equinix platform will see itself extended to India, adding two interconnected data services as well. This deal further provides the company to expand throughout the country, should they deem to do it.
GPX India has its business based out of a fiber-connected campus within Mumbai, which holds two data centers. With its acquisition, the company will add over 90,000 square feet of colocation space, as well as 1,350 cabinets to Platform Equinix once the building is finished, according to the statement.
Charles Meyers stands as the CEO and President of Equinix, and has given comment about the matter at large. He explained that India stands as the second-largest user base within the world at large. The amount of internet consumption is expected to grow, as well, as internet infrastructure, smartphone ownership, and 5G/4G technology develop more in the country.
Plans Of Global Expansion
With the expansion of Platform Equinix within India, Meyer explained that a long-term strategic objective for Equinix would be fulfilled. As such, he stated that the company is excited that GPX had agreed to the transaction. Meyer described this as a chance to meet the needs of the customers within the country as they seek to expand their digital business. With the GPX India acquisition, Meyer explained that the company would take a massive leap forward regarding the growth of its India ecosystem. As such, Meyer explained that there would be a solid foundation of expansion and rapid growth within the country.
He explained that this acquisition comes shortly after Equinix had announced its planned expansion into Canada. Meyer described this move as a testament to Equinix and its commitment to global expansion.