Equinix Acquires GPX India for $161M
- Aug 11, 2020
Equinix has made its first foray into India with a $161 million, all-cash acquisition of the Indian subsidiary of GPX Global Systems, GPX India.
The sale price reflects a multiple of approximately 15x the projected earnings before interest, taxes, depreciation and amortization (EBITDA) at full utilization. The transaction is expected to be finalized by the first quarter of 2021.
As part of the deal, Equinix purchased two interconnected carrier-neutral Tier IV data centers: the 30,000-square-foot GPX Mumbai1 and the recently opened GPX Mumbai2, which will span 60,000 square feet upon full build-out. The properties add 1,350 cabinets to Equinix’s portfolio, with an additional 500 cabinets upon completion. The facilities host a large digital ecosystem which includes eight cloud service providers, 12 telecommunication companies, and 130 internet service providers.
Cyril Amarchand Mangaldas, Deloitte Touche Tohmatsu India and J.P. Morgan assisted Equinix in the transaction. KMPG India represented GPX Global Systems in a financial advisory role and Kanga & Co. served as the legal advisor for the seller.
In June, Equinix debuted the $142 million DA11, its ninth facility in Dallas, which is part of the Dallas Infomart Data Center. The new, four-story building houses 1,975 cabinets and 72,000 square feet of colocation space.