Verizon to Sell Data Centers to Equinix in a $3.6 Billion Deal

Verizon Communications, Inc. (NYSE:VZ) agreed to sell a portfolio of data-centers to Equinix Inc. for $3.6 billion as the communications giant turns to expand its mobile video and advertising business. Under the deal, Equinix will get 24 data center sites in 15 metro markets, including New York, Atlanta, Chicago, Bogota and Sao Paulo, according to a statement Tuesday. The transaction is expected to close in the middle of next year.

Verizon, the nation’s largest wireless carrier, bought Terremark Worldwide Inc. for $1.3 billion in 2011 and expected to compete in the data-hosting and cloud-services business. But now it joined major telecom companies to spin off its underperforming assets in order to get more fund to expand its core business.

Verizon now is entering into mobile video and advertising area by making aggressive acquisition. The company bought AOL’s web properties for $4.4 billion last year and purchased Yahoo! Inc. for $4.83 billion, which is still pending.

For Equinix, the deal will boost its data centers portfolio to 175 data centers in 43 markets around the world. The deal will also help the company build its footprint and expand its customer base. “The new assets will bring hundreds of new customers to Platform Equinix while establishing a presence in new markets and expanding our footprint in existing key metros,” Equinix President and CEO Steve Smith said.

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