Menu
Data centre M&A deals hit $20B in 2017

Data centre M&A deals hit $20B in 2017

Entering 2018, there are also four additional major deals that have been agreed but not yet closed

The total value of significant data centre-oriented mergers and acquisitions (M&A) deals that closed in 2017 reached $20 billion, far surpassing the total for 2015 and 2016 combined.

Entering 2018, there are also four additional major deals that have been agreed but not yet closed, with a total value of over $2.6 billion.

On average through 2017, Synergy Research findings reported that there was almost one significant M&A deal closed every week.

The largest transaction in the year was Digital Realty’s $7.6 billion acquisition of DuPont Fabros, but there were four other deals that were valued at a billion dollars or more, involving acquisitions by Equinix, Cyxtera, Peak 10 and Digital Bridge.

There were another twelve deals that were valued in the $100 million to $1 billion range, and 31 smaller deals that were each valued at up to $100 million.

By comparison with the 48 deals closed in 2017, 2015 and 2016 combined saw just 45 deals, of which only three were in the billion dollar plus range.

According to findings, the largest deal in those two years was the Equinix acquisition of European retail colocation provider TelecityGroup for $3.8 billion.

“Above all else, what is driving the data centre M&A activity is enterprises focusing more on improving IT capabilities and less on owning data centre assets,” Synergy Research chief analyst John Dinsdale said.

“That shift is driving huge growth in outsourcing, whether it is via cloud services, or use of colocation facilities, or sale and leaseback of data centres.

“The dramatic growth of cloud providers is also driving changes in the data centre industry, as data centre operators strive to help them rapidly increase scale and global footprint. We expect to see much more data centre M&A over the next five years.”

Over the 2015-2017 period, Dinsdale said by far the largest investors have been Digital Realty and Equinix, the world’s two leading colocation providers.

In aggregate they spent $19 billion on acquisitions of data center operators, which excludes the pending acquisition of Metronode by Equinix.

As outlined by Dinsdale, Equinix has made major acquisitions in all four regions of the world, while Digital Realty has focused on the United States and Europe.

Other notable acquirers included CyrusOne, Peak 10, Digital Bridge, NTT, Carter Validus, Iron Mountain, Cyxtera and Elegant Jubilee.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Data CentreSynergy Research

Featured

Slideshows

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Kiwi channel debates GDPR as Reseller News Exchange hits Wellington

Kiwi channel debates GDPR as Reseller News Exchange hits Wellington

This exclusive Reseller News Exchange, in association with Arrow ECS ANZ, ForeScout and StorageCraft, went on the road to debate the early implications of GDPR in New Zealand, extracting opportunities while evaluating challenges for the channel in the year ahead.

Kiwi channel debates GDPR as Reseller News Exchange hits Wellington
Show Comments