US-based Equinix has agreed to buy Ontario Teachers’ Pension Plan’s (OTPP) Australian data centre business, Metronode, for A$1.04bn (€764m) in an all-cash transaction.

OTPP acquired Australia’s data centre provider in two tranches from Leighton Holdings, now known as CIMIC and owned by the Spanish Group, Grupo ACS.

The Canadian pension fund purchased a 70% stake for AUD620m in 2013 and acquired the balance a year ago.

Metronode operates facilities throughout Australia, housing mission-critical internet and communications infrastructure for some of Australia’s largest corporations, government agencies, and telecommunications and IT service providers.

OTTP began the sale process of Metronode in July, attracting bids from global players including Singapore’s ST Telemedia.

A deal was locked in over the past week with Equinix.

The parties said the acquisition agreement was signed on December 15, with the transaction expected to close in the first half of 2018, subject to conditions including regulatory approval.

Equinix said acquisition of Metronode will further strengthen its position in Asia-Pacific and support its ongoing global expansion.

It will have 40 data centres throughout the region, lifting its global tally to 200 in 52 markets.

In Australia, Equinix’s presence will increase to 10 data centres, adding Brisbane, Canberra, Adelaide and Perth to give it full national coverage.

In a statement, the US buyer said Metronode’s Perth site on the west coast of Australia will house the landing station for the new Vocus Australia Singapore Cable.

When combined with existing submarine cable deployments in Sydney, Equinix will be positioned as a leading provider of access to intercontinental connectivity across the combined national footprint, it said.

Metronode adds more than 80,000sqm of land, 90% of which is owned, to the global portfolio of Equinix.

Several of the acquired assets provide Equinix with an opportunity to build additional capacity and to capture benefits of scale over time.

Equinix said Metronode generated approximately AUD60m in revenue in the 12 months ending September 30, with a margin profile accretive to the Equinix Asia-Pacific business.