A team from the Johannesburg office of global law firm Baker McKenzie advised digital infrastructure company Equinix (NASDAQ) on its USD 160-million data centre turnkey development and long term lease transaction in Johannesburg.
The deal was completed on 9 December 2022. This transaction is considered to be a strategic milestone for Equinix as it augments the company's current African footprint in Nigeria, Ghana and Côte d'Ivoire, and further reinforces its reputation as a digital disruptor in the African market. The data centre is expected to open in mid-2024.
The team advised on all legal aspects of the transaction including, due diligence, key transaction documents, tax and regulatory advice.
Baker McKenzie's Johannesburg-based Corporate/M&A Partner, Mike van Rensburg, lead partner on the transaction, said, "We are delighted to have assisted Equinix on this significant transaction in the Technology, Media and Telecommunications sector in South Africa. The transaction marks the first time Equinix has invested in the South African market, which is a strategic location for the company due to the country's significant (and growing) network of sub-sea communications cables, role as a digital connectivity hub and status as one of the most digitally developed nations on the African continent.
"Equinix's investment underscores the rapidly growing demand for digitisation across Africa and will provide a further platform to enable South African companies to expand into global markets and for global companies to expand their operations in South Africa," van Rensburg added.
The team that worked on this transaction comprised Baker McKenzie Partners in Johannesburg Mike van Rensburg, Janet MacKenzie and Kieran Whyte, and Director Designates Tanya Seitz and Denny Da Silva.