Equinix To Fortify Hybrid Multicloud Efforts With Packet Buyout (Revised)
Zacks Investment Research | Jan 22, 2020 05:35AM ET
Equinix, Inc. (NASDAQ:EQIX) recently entered into a definitive agreement to purchase Packet, the leading bare metal automation platform. The transaction is expected to close in the ongoing quarter.
Packet offers bare metal cloud platform — dedicated servers which can be used by developers with cloud-like ease, scale and speed. The company’s proprietary technology enables the automation of complex infrastructure without using virtualization or multitenancy.
Equinix will integrate this innovative and developer-oriented bare metal service offering with its network of colocation data centers and inter-connection technology.
This will create a world-class, enterprise-level bare metal offering across Platform Equinix, allowing customers to accelerate digital infrastructure deployment on demand. Further, by leveraging bare metal services at Equinix, the integration will provide a single platform to users and equip them to interconnect anywhere on a global scale.
This will enhance the development and delivery of its inter-connected edge services, and help companies benefit from its rich ecosystems and globally-interconnected platform.
In addition, by acquiring Packet, the company will have access to its developer-friendly product, and enable enterprises and service providers to build and deploy low-latency services at the edge.
Equinix has been actively expanding its infrastructure footprint and enhancing capabilities through acquisitions and strategic tie-ups. Recently, it wrapped up the acquisition of three data centers from Axtel S.A.B. de C.V., which cater to Mexico City and Monterrey metro areas of Mexico. The company shelled out $175 million for this buyout, making it one of the largest network-neutral data-center operators in Mexico.
While such moves are in line with the growing demand for colocation and inter-connection services, the same requires huge capital outlays.
Over the past six months, shares of this Zacks Rank #3 (Hold) company have gained 16.3%, outperforming real estate market’s growth of 6.5%.
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