Equinix to acquire Funke Opeke's MainOne for $320 million

Equinix, a multinational digital infrastructure company led by U.S. businessman Charles Meyers, has announced its plans to acquire MainOne, West Africa’s leading communications services and network solutions provider, at a valuation of $320 million.

MainOne is West Africa’s leading communications services and network solutions provider. It operates a submarine communications cable stretching from Portugal to South Africa under Main Street Technologies, a technology group founded by Nigerian technopreneur Funke Opeke.

Equinix believes that MainOne is one of the most exciting technology businesses to emerge from Africa. the company operates a network that extends across 65 points of presence in cities across Portugal, Nigeria, South Africa, Ghana and Cote d’Ivoire.

According to the definitive agreement signed by Meyers and Opeke, Equinix will acquire MainOne and its assets with an all-cash transaction at an enterprise value of $320 million.

The deal, which will be adjusted to reflect the funds from operations upon close, excluding integration costs, will be finalized in Q1 2022, subject to it satisfying customary closing conditions and regulatory approvals.

The deal’s completion marks the first step in Equinix’s long-term strategy to become a leading African carrier-neutral digital infrastructure company, as it moves to gain exposure in Africa’s largest economy.

The $320-million transaction will unlock value for Nigerian investors and stakeholders in MainOne, including Opeke, Fola Adeola, Asue Ighodalo, First Bank of Nigeria, Polaris and African Development Bank.

Meyers, president and CEO of Equinix, said the acquisition represents a critical point of entry for Equinix into the 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,” he said. “The platform’s customer relationships, partner ecosystem, and operating capability will extend the reach of Equinix and bolster opportunities for customers in Africa and throughout the world.”

Under the transaction terms, the management team, including CEO Opeke, will continue to serve in their respective roles.