Equinix Eyes Expansion in India With GPX India Acquisition
Equinix, Inc. EQIX extended Platform Equinix to India, with the $161-million acquisition of GPX Global Systems, Inc.’s Indian operations — GPX India — consisting of two highly-interconnected data centers.
The transaction value indicates a multiple of nearly 15X the estimated EBITDA at full utilization. Moreover, this all-cash deal is anticipated to close in first-quarter 2021, subject to customary closing norms, including regulatory approval.
Through the acquisition, Equinix will add a fiber-connected campus, consisting of two data centers located in Mumbai. The campus has more than 1,350 cabinets, with a provision to add another 500 cabinets at full build-out. At full built, the campus will add more than 90,000 square feet of colocation space to Platform Equinix.
Moreover, the strategic location of the data centers in Mumbai will likely enable the company to enjoy robust demand and leasing activity. This is because the city is a domain for important IT infrastructure of numerous global companies and has international connectivity serviced by subsea cables at close landing sites.
Per management, core digital sectors in India like IT and digital communication services are estimated to double in size by 2025 and will account for $355-$435 billion to GDP. Hence, given this massive proliferation of digitization in the country, the buyout is a strategic fit.
It will provide a platform for Equinix’s existing network, content, cloud and enterprise customers that are looking to expand in the dynamic market. The expansion will aid local companies to advance digital transformations by deploying their infrastructures, applications and services closer to the edge on the back of Equinix’s global-interconnected platform of more than 210 International Business Exchange data centers.
Over the past year, shares of this Zacks Rank #3 (Hold) company have gained 38.2% as against the real estate market’s decline of 11.1%.
Stocks to Consider
City Office REIT, Inc.’s CIO funds from operations (“FFO”) per share estimate for the ongoing year have been unchanged at $1.11 over the past 30 days. The company currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Gladstone Land Corporation’s LAND FFO per share estimate for 2020 has been unchanged at 68 cents over the past month. It currently carries a Zacks Rank of 2.
Cousins Properties Incorporated’s CUZ Zacks Consensus Estimate for 2020 FFO per share has revised 1% upward to $2.77 over the past month. The company currently carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Equinix, Inc. (EQIX) : Free Stock Analysis Report
Cousins Properties Incorporated (CUZ) : Free Stock Analysis Report
Gladstone Land Corporation (LAND) : Free Stock Analysis Report
City Office REIT, Inc. (CIO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
