Switch acquires Texas-based colo provider Data Foundry for $420M
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Switch entered into an agreement to acquire carrier-neutral colocation provider Data Foundry, for $420 million in an all cash transaction, the company announced last week.
The acquisition is expected to close by mid-2021, subject to customary closing conditions including regulatory approval.
With data centers in Austin and Houston, Data Foundry is strategically located in a rapidly growing technology hub which offers a highly favorable business environment both established and early-stage growth companies. The acquisition provides Switch with expansion opportunities in Texas, complementing and diversifying Switch’s existing geographic footprint and revenue exposure.
This move expands the Switch portfolio to 16 operational data centers across six locations and will anchor the company’s Fifth Prime data center campus.
“We are extremely pleased to reach an agreement with Data Foundry and to announce the launch of our Fifth Prime Data Center Campus in Texas,” said Switch founder and CEO Rob Roy. “The Data Foundry acquisition extends Switch’s national reach and enhances our ability to serve Texas and the Central U.S. region with low latency connectivity, while also providing critical geographic and revenue diversification with robust expansion potential to accelerate long-term growth and value creation.”