Public Startups

Equinix Closes $335M Deal For New York’s Packet

Data center giant Equinix has bought New York-based startup Packet for $335 million, the companies announced Monday. Packet provides automated bare metal infrastructure for edge computing.

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Edge computing is a “movement” to bring the power of the computer closer to where data is created or consumed to “rival the experience of the human brain,” explained Packet co-founder Zac Smith.

Equinix has data centers all over the world. With Packet being part of Equinix, it will be able to take its platform and put it all throughout Equinix’s platform. It will also help more companies take advantage of the hybrid cloud, Smith said.

Packet, while headquartered in New York, has a presence in cities such as Dallas and Palo Alto. Packet’s 140 employees will be joining Equinix.

News of the planned deal was announced earlier this year, and was expected to close in the first quarter of 2020. The acquisition closed on March 3, according to Packet.

Packet raised $9.4 million in a Series A round led by SoftBank in August 2016 and landed $25 million in a Series B round led by Third Point Ventures in September 2018. Battery Ventures, Dell Technologies Capital and Samsung NEXT have also backed the company.

Packet wasn’t looking to be acquired, Smith said, but it already had a relationship with Equinix. The acquisition made sense, he said, as both Equinix and Packet are infrastructure providers.

Packet marks Equinix’s 25th acquisition to date, with the company last buying Metronode in December 2017.

Editor’s Note: The acquisition price was revised post-publication from $355 million to $335 million and the number of acquisitions changed from 13 to 25, due to updated information provided by the company.

Illustration Credit: Li-Anne Dias

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