Telecom
Equinix Acquires MainOne for $320m
Equinix Inc., the world’s digital infrastructure company™, today announced its expansion into Africa through its intended acquisition of MainOne, a leading West African data center and connectivity solutions provider, with presence in Nigeria, Ghana and Côte d’Ivoire.
The acquisition is expected to close Q1 of 2022, subject to the satisfaction of customary closing conditions including the requisite regulatory approvals.
The transaction has an enterprise value of US $320M and is expected to be AFFO accretive upon close, excluding integration costs, marking the first step in Equinix’s long-term strategy to become a leading African carrier neutral digital infrastructure company.
With more than 200 million people, Nigeria is Africa’s largest economy and, along with Ghana, has become an established data center hub. This makes the acquisition a pivotal entry point for Equinix into the continent.
Equinix believes MainOne to be one of the most exciting technology businesses to emerge from Africa. Founded by Funke Opeke in 2010, the company has enabled connectivity for the business community of Nigeria and now has digital infrastructure assets including three operational data centers, with an additional facility under construction expected to open in Q1 2022.
Upon closing, these facilities will add more than 64,000 gross square feet of space to Platform Equinix®, with 570,000 square feet of land for future expansions. MainOne owns and operates a subsea network from Nigeria to Portugal, as well as 1,200 kilometers of reliable terrestrial fiber network across southern Nigeria.
These are all improving connectivity to and from Europe, West African countries and the major business communities in Nigeria. When completed, this acquisition will extend Platform Equinix into West Africa, giving organizations based inside and outside of Africa access to one of the world’s fastest growing markets.
Charles Meyers, President and CEO, Equinix: “The acquisition of MainOne will represent a critical point of entry for Platform Equinix into the expansive and rapidly growing African market. MainOne’s leading interconnection position and experienced management team represent critical assets in our aspirations to be the leading neutral provider of digital infrastructure in Africa.
“Growth of data consumption in Africa is amongst the fastest in the world, and our customers are looking for a trusted partner to pursue the opportunities presented by broad mobile adoption and greater connectivity across the region.
“MainOne’s infrastructure, customer relationships, partner ecosystem and operating capability will extend the reach of Platform Equinix and bolster opportunities for customers in Africa and throughout the world.”
Under the terms of the transaction, the management team, including CEO Funke Opeke, will continue to serve in their respective roles. Opeke holds a master’s in engineering from Columbia University and was named one of the World’s Top 50 Women in Tech by Forbes in 2018 for her efforts in sparking internet adoption. She was also recently named one of the Top 10 Women to Watch in the Data Center Industry by Data Centre Magazine.
Key Facts
– Under the terms of the agreement, Equinix intends to acquire MainOne and its assets with an all-cash transaction at an enterprise value of US$320M, which is expected to be AFFO accretive upon close, excluding integration costs. The transaction is expected to close Q1 of 2022, subject to the satisfaction of customary closing conditions including the requisite regulatory approvals.
MainOne’s assets include:
– Three operational data centers, with an additional facility under construction expected to open in Q1 2022. These facilities will add more than 64,000 gross square feet space to Platform Equinix, in addition to 570,000 square feet of land for future expansions.
– An extensive submarine network extending 7,000 kilometers from Portugal to Lagos, Accra and along the west African coast, with landing stations in Nigeria, Ghana and Côte d’Ivoire.
– A terrestrial network of more than 1,200 kilometers of reliable terrestrial fiber in Lagos, Edo and Ogun States. Connectivity to terrestrial sites extends across 65 PoPs (points of presence) in cities across Portugal, Nigeria, Ghana and Cote d’Ivoire.
– Access to key internet exchanges enabling low latency to key global networks, including Amazon, Microsoft, Apple, Google and Facebook.
– An estimated 800+ business-to-business customers, including major international technology enterprises, social media companies, global telecommunications operators, financial service companies and cloud service providers.
– Nearly 500 employees and a management team with a deep understanding of local and international markets.
– The facilities generate approximately US$60M annualized (Q2’21LQA) revenue with a purchase multiple of approximately 14x EBITDA.
– Globally, Platform Equinix is comprised of 237 data centers across 65 metros and 27 countries, providing data center and interconnection services for over 10,000 of the world’s leading businesses, including more than 50% of Fortune 500 companies.
John Dinsdale, Chief Analyst & Research Director, Synergy Research Group: “Africa has been the missing piece in the Equinix jigsaw, and this acquisition of MainOne will be a great first step onto the continent. The demand for data center services in Africa is strong, with Nigeria at the epicenter of exponential economic growth in West Africa.
“Nigeria is Africa’s largest country by both population and economy, and its growth drivers include rapid mobile adoption, increased data consumption from its young population, good subsea and terrestrial connectivity, and a strong enterprise market.
“This is advancing the region toward a more digitalized economy and driving data center growth and expansion to provide much-needed digital infrastructure.”
Funke Opeke, Founder and CEO, MainOne: “Equinix will accelerate our long-term vision to grow digital infrastructure investments across Africa. I thank our founding shareholders led by Mr. Fola Adeola, MainStreet Technologies, AFC, PAIDF, FBN, Polaris and AfDB for investing in the MainOne vision to bridge the Digital Divide in Africa.
“With similar values and culture to what we have jointly built in twelve years, Equinix is the preferred partner for our growth journey. The MainOne team is excited about the partnership created through the acquisition, and we look forward to building our next chapter together.”
Eugene Bergen, President, EMEA, Equinix: “Expansion in Africa has long been a strategic priority for us. With MainOne, we have found a company that not only has highly complementary data center and connectivity assets, but can further accelerate the expansion of our business model and growth objectives.
“CEO Funke Opeke and her team have built a powerful and dynamic infrastructure that will enable international customers access to the continent and African organizations access to the global Equinix platform. Customers can take full advantage of Equinix’s leading global interconnection services to connect with customers and partners, participate in rich digital ecosystems and expand their business across Africa and around the world.”
Dimension Data has said that the proceeds from its Series 1 corporate bond, will support the expansion of the company’s fibre infrastructure to meet Nigeria’s growing demand for digital connectivity.
This followed the successful subscription of the corporate bond.
Recall that Dimension Data Limited said that it has completed the signing ceremony for the issuance of N4.05 billion (approximately US$2.9 million).
This sum marks the first tranche of a N20 billion (US$14.7 million) bond programme announced earlier this year.
The bond programme was raised under Dimension Data SPV Funding Plc, following approval from the Securities and Exchange Commission (SEC) of Nigeria.
The company says the proceeds will support the expansion of the company’s fibre infrastructure to meet Nigeria’s growing demand for digital connectivity.
Speaking at the ceremony, Olugbenga Olabiyi, managing director of Dimension Data Limited, said the investment reflects the company’s long-term commitment to strengthening Nigeria’s digital economy.
The planned investments will fund the continued expansion of Dimension Data’s fibre network, supporting increasing demand from financial institutions, fintechs, enterprise customers and other technology-driven sectors.
Founded in 1983 and headquartered in Johannesburg, the company has grown its footprint across the Middle East and Africa.
Today Dimension Data is a member of the NTT Ltd Group, one of the world’s leading technology companies.
As cloud adoption, digital financial services and data-intensive applications continue to grow, the company believes resilient fibre infrastructure will remain a critical enabler of Nigeria’s digital economy.
The Federal Government has announced that work will commence within weeks on a 90,000-kilometre fibre optic network expected to connect every state, local government area and ward in Nigeria, marking what officials describe as one of the country’s most ambitious digital infrastructure projects.
Dr Bosun Tijani, Minister of Communications, Innovation and Digital Economy, disclosed this on Tuesday after briefing President Bola Tinubu at the State House, Abuja, on the progress of three flagship digital transformation initiatives being implemented by his ministry.
According to the minister, all resource mobilisation and contractual processes for the nationwide fibre project have been completed, paving the way for physical deployment.
“We’re now at the point where, in a few weeks’ time, we should start to lay those fibre, so people will start seeing us around the country deploying the fibre. This is going to transform Nigeria for good,” Tijani said.
He explained that the project would deliver fibre optic infrastructure to every geopolitical zone, state, local government area and ward, significantly expanding broadband access and improving the quality of internet connectivity across the country.
“This is a project where every state, every geopolitical zone, every local government and every ward in this country will be covered with fibre optic cables, which will transform the quality of connectivity,” he added.
Bosun Tijani attributed the progress in the digital economy to a series of reforms approved by President Tinubu, including the designation of digital infrastructure as Critical National Infrastructure, tariff adjustments and tax harmonisation measures sought by industry operators.
“I think our sector has been extremely fortunate. Mr. President has given us quite a number of things that the sector has been demanding for a long time. Whether it’s the Critical National Infrastructure designation for all digital infrastructure, the slight adjustment in tariff, or the tax harmonisation, these are reforms the industry has long requested.
“I think it’s probably the sector that is most appreciative of this government because when we came in, the sector was contributing between 16 and 18 per cent to our GDP, but today it is tracking close to 21 per cent. That represents significant growth,” he said.
The minister noted that the reforms had also improved the financial performance of major operators in the telecommunications sector.
On efforts to bridge the digital divide, Tijani disclosed that the government would begin deploying about 3,700 telecommunications towers from October to provide network coverage for more than 20 million Nigerians currently living in underserved communities without access to telecom services.
He said the President had approved the project after months of capital mobilisation and planning.
“Today we’re at a point where, before the end of the year, we’ll also start to deploy close to 3,700 towers. It’s taken a lot to put this project together and raise the required capital, but we are now ready to begin deployment around October,” he said.
The minister also announced that Nigeria would officially launch an alphanumeric postcode system on October 1, a move he said would place the country among a select group of nations operating an advanced digital addressing system.
“Nigeria will be amongst maybe 10 or 15 countries in the world with an alphanumeric postcode. It’s the latest design in postcode systems, where we can identify every property in this country. We’re hoping to launch that on the 1st of October,” he said.
Tijani explained that the new system would assign a unique address to every property nationwide, enhancing logistics, accelerating e-commerce, improving emergency response and strengthening public service delivery.
“Inability to locate places comes at a cost. You can imagine what this will do for e-commerce. It means goods can now be delivered in record time,” he said.
He added that integrating the postcode system with existing government identity databases would improve security and make public services more efficient.
“Our alphanumeric postcode is unique because it allows us to assign a unique address to every property. In many countries, such as the UK, postcodes cover clusters of buildings. What we are introducing will uniquely identify every building, and that will be a game changer for Nigeria in terms of security, commerce and public service delivery,” the minister stated.
In a bold move to strengthen Nigeria’s digital sovereignty and the digital economy, the National Information Technology Development Agency (NITDA) has formally unveiled the National Sovereignty Cloud Initiative (NSCI) Regulatory Instruments, thereby setting a new benchmark for the country’s digital future.
NITDA
The NSCI is a strategic programme of the federal government coordinated by NITDA. It is designed to bolster Nigeria’s digital sovereignty and accelerate the country’s adoption of reliable cloud infrastructure. The initiative consists of the National Computing Guideline, the National Cloud Technical Guideline, the National Digital Infrastructure Assurance Framework, and the National Cloud Investment Strategy.
Speaking during the ceremony in Abuja, the Director General, Kashifu Inuwa Abdullahi CCIE, described the NSCI as a strategic move to safeguard Nigeria’s digital future. He noted that the instruments will stimulate innovation, encourage investment in local cloud services, and enhance digital resilience.
“These instruments provide the regulatory certainty, technical standards, and assurance framework required to build a trusted cloud ecosystem that safeguards Nigeria’s digital sovereignty while creating new opportunities for investment, innovation, and sustainable economic growth.
“We should position ourselves not to serve Nigeria alone, but to serve West and Central Africa. Nigeria is already the digital gateway to West Africa and can extend to every part of Africa. But we can only realise that goal when we build our infrastructure. So, today’s event is the first step in that direction,” he stated.
Abdullahi appreciated the support of relevant stakeholders and the efforts of the NSCI Technical Working Group, which culminated in the successful development of the regulatory instruments. He emphasised that collective action of regulatory agencies is necessary for a seamless implementation of the initiative.
Speaking earlier, the Permanent Secretary of the Ministry of Communications, Innovation, and Digital Economy, Engr. Nadungu Gagare, declared that the launch of the NSCI underscores the federal government’s commitment to safeguarding Nigeria’s data borders and digital economy.
“By ensuring that government data remains strictly within national jurisdiction and under local operational control, we are guaranteeing data sovereignty and regulatory compliance. It will catalyse local cloud capacity, foster local job creation, and empower indigenous investors and innovators to build solutions on a secure, locally hosted foundation,” Gagare said.
The Permanent Secretary commended the management team of NITDA, the NSCI Technical Working Group, and other stakeholders for their collaborative spirit in driving the initiative. He promised that the Ministry would ensure that the strategic objectives of the NSCI are fully realised across all ministries, departments, and agencies.
In a message, the Governor of the Central Bank of Nigeria (CBN), Dr Olayemi Cardoso, congratulated NITDA for promoting a collaborative approach, adding that modern digital regulation succeeds through coordinated regulatory actions for common national objectives.
Cardoso, who was represented by Dr. Rakiya Opemi Yusuf, the Director of the Payment System Supervision Department, acknowledged that the launch testifies to the robust collaboration existing between the apex bank and other government institutions.
“CBN regulates the financial ecosystem. NITDA provides the national framework for digital infrastructure, cloud governance and assurance. These responsibilities are complementary, not competing. Together, they create a coherent national architecture.
“Together with NITDA, and with the continued cooperation of industry, we will continue to build an ecosystem that protects Nigeria’s financial system today and positions our nation as Africa’s trusted hub for digital finance and cloud innovation.
One of the most encouraging aspects of today’s event is the strong institutional collaboration between NITDA, the CBN, and other relevant government institutions. This collaboration demonstrates an important principle.”
Cardoso reiterated that as a responsive regulator, the CBN remains committed to providing clear expectations, firm principles, proportionate implementation, and constructive engagement with all stakeholders to position Nigeria as Africa’s trusted hub for digital finance and cloud innovation.
Also, the Managing Director/CEO of Galaxy Backbone Limited, Prof. Ibrahim Adeyanju, noted that the NSCI couldn’t have come at a better time than now, especially considering CBN’s recent directive mandating banks and financial institutions to localise their data.
Adeyanju expressed confidence that the initiative would push the ecosystem to greater heights by encouraging investment, developing indigenous talent, and creating employment opportunities akin to the gains brought by the deregulation of the telecoms sector.
NITDA will constitute the Sovereign Cloud Governance Committee (SovGov) within the next two weeks to oversee the implementation of the NSCI. The committee would comprise representatives from relevant Government institutions, sector regulators, industry, and the private sector, with NITDA serving as the Secretariat
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