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Acquisitions | 12 Months Ended
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Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract] |
Acquisitions | Acquisitions Pending Acquisition Acquisition of MainOne Cable Company Ltd. (the "MainOne Acquisition") On December 6, 2021, we entered into an agreement to purchase MainOne Cable Company Ltd. ("MainOne"), representing three operational data centers, with an additional facility under construction. We intend to acquire MainOne and its assets in an all-cash transaction at an enterprise value of approximately $320 million. The acquisition is expected to close in the second quarter of 2022, subject to customary conditions including regulatory approval. Upon the close of the acquisition, the operating results of the acquired business will be reported in the EMEA region. The MainOne Acquisition supports our ongoing expansion to meet customer demand in the West African market. 2021 Acquisition Acquisition of GPX India (the "GPX India Acquisition") On September 1, 2021, we completed the acquisition of GPX India, representing two data centers in Mumbai, India, for a total purchase consideration of approximately INR12.5 billion, or $170.5 million at the exchange rate in effect on that date. The GPX India Acquisition supports our ongoing expansion to meet customer demand in the market. 2020 Acquisitions Acquisition of Bell Data Centers (the "Bell Acquisition") On October 1, 2020, we completed the acquisition of 12 data center sites across Canada from Bell, with one additional data center in Ottawa Canada acquired on November 2, 2020, for a total combined purchase consideration of approximately C$934.3 million, or $704.0 million at the exchange rates in effect on those dates. The acquisition supports our ongoing expansion to meet customer demand in Canada. Acquisition of Packet (the "Packet Acquisition") On March 2, 2020, we acquired all outstanding shares and equity awards of Packet, a leading bare metal automation platform for a total purchase consideration of approximately $290.3 million in cash. In addition, we paid $16.1 million in cash to accelerate the vesting of unvested Packet equity awards for certain Packet employees, which was recorded as stock-based compensation expense during the three months ended March 31, 2020. In connection with the acquisition, we also issued restricted stock awards with an aggregated fair value of $30.2 million and a three-year vesting period, which will be recognized as stock-based compensation costs over the vesting period. The acquisition, combined with Equinix Metal TM, is expected to accelerate our strategy to help enterprises deploy hybrid multicloud architectures on our data center platform. Acquisition of data centers from Axtel (the "Axtel Acquisition") On January 8, 2020, we completed the acquisition of three data centers in Mexico from Axtel for a total purchase consideration of approximately $189.0 million, including $175.0 million in cash and $14.0 million we paid to the seller for recoverable value-added taxes ("VAT") incurred prior to the acquisition, which related to a corresponding VAT receivable acquired upon acquisition. The acquisition supports our ongoing expansion to meet customer demand in our Americas region. Purchase price allocation Each of these acquisitions constitute a business under the accounting standard for business combinations and, therefore, were accounted for as business combinations using the acquisition method of accounting. Under this method, the total purchase price is allocated to the assets acquired and liabilities assumed measured at fair value on the date of acquisition. As of December 31, 2021, we had not completed the detailed valuation analysis to derive the fair value of assets acquired and liabilities assumed from the GPX India Acquisition, including property, plant and equipment, intangible assets and the related tax impacts; therefore, the purchase price allocation is based on provisional estimates and subject to continuing management analysis. A summary of the final allocation of total purchase consideration is presented as follows (in thousands):
| GPX India (1) |  | Bell (2) |  | Packet |  | Axtel
| Provisional |  | Final
Cash and cash equivalents | $ | 9,406 |  |  | $ | — |  |  | $ | 1,068 |  |  | $ | — |
Accounts receivable | 4,399 |  |  | — |  |  | 5,098 |  |  | — |
Other current assets | 8,883 |  |  | 696 |  |  | 299 |  |  | 14,048 |
Property, plant and equipment | 88,108 |  |  | 538,717 |  |  | 27,945 |  |  | 76,407 |
Operating lease right-of-use assets | 62 |  |  | 14,359 |  |  | 1,519 |  |  | 1,646 |
Intangible assets | 15,472 |  |  | 75,857 |  |  | 58,500 |  |  | 22,750 |
Goodwill | 77,162 |  |  | 172,387 |  |  | 230,620 |  |  | 78,902 |
Deferred tax and other assets | 20 |  |  | 722 |  |  | 138 |  |  | — |
Total assets acquired | 203,512 |  |  | 802,738 |  |  | 325,187 |  |  | 193,753 |
Accounts payable and accrued liabilities | (1,569) |  |  | (895) |  |  | (1,275) |  |  | (238) |
Other current liabilities | (478) |  |  | — |  |  | (860) |  |  | — |
Operating lease liabilities | (62) |  |  | (13,340) |  |  | (1,519) |  |  | (1,586) |
Finance lease liabilities | (20,565) |  |  | (80,026) |  |  | (27,945) |  |  | — |
Deferred tax and other liabilities | (10,373) |  |  | (4,495) |  |  | (3,290) |  |  | (2,911) |
Net assets acquired | $ | 170,465 |  |  | $ | 703,982 |  |  | $ | 290,298 |  |  | $ | 189,018 |
(1)For the GPX India Acquisition, the purchase price allocation adjustments since the provisional amounts reported as of September 30, 2021 were not significant. (2)For the Bell Acquisition, the purchase price allocation adjustments since the provisional amounts reported as of December 31, 2020 were not significant. Property, plant and equipment - The fair values of property, plant and equipment acquired from these four acquisitions were estimated by applying the cost approach, with the exception of land, which was estimated by applying the market approach. The key assumptions of the cost approach include replacement cost new, physical deterioration, functional and economic obsolescence, economic useful life, remaining useful life, age and effective age. Intangible assets - The following table presents certain information on the acquired intangible assets (in thousands):
Intangible Assets |  | Fair Value |  | Estimated Useful Lives (Years) |  | Weighted-average Estimated Useful Lives (Years) |  | Discount Rate
GPX India: |  |  |  |  |  |  |  |
Customer relationships (1) |  | $ | 15,472 |  |  | 15.0 |  | 15.0 |  | 11.0 | %
Bell: |  |  |  |  |  |  |  |
Customer relationships (1) |  | 75,857 |  |  | 15.0 |  | 15.0 |  | 8.0 | %
Packet: |  |  |  |  |  |  |  |
Trade names (2) |  | 1,300 |  |  | 3.0 |  | 3.0 |  | 8.0 | %
Existing technology (3) |  | 5,100 |  |  | 3.0 |  | 3.0 |  | 8.0 | %
Customer relationships (1) |  | 52,100 |  |  | 10.0 |  | 10.0 |  | 8.0 | %
Axtel: |  |  |  |  |  |  |  |
Customer relationships (1) |  | 22,750 |  |  | 15.0 |  | 15.0 |  | 13.3 | %
(1)The fair values were estimated by calculating the present value of estimated future operating cash flows generated from existing customers less costs to realize the revenue. The rates reflect the nature of the assets as they relate to the risk and uncertainty of the estimated future operating cash flows, as well as the risk of the country within which the acquired business operates. (2)The fair value was estimated using the relief from royalty method, with a relief from royalty rate of 1.0%. (3)The fair value was estimated under the cost approach by projecting the cost to recreate a new asset with an equivalent utility of the existing technology. The key assumptions include total cost, time to recreate, opportunity cost and functional obsolescence. The discount rate was utilized for the opportunity cost assumption. Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed. Goodwill is attributable to the workforce of the acquired business and the projected revenue increase expected to arise from future customers after these acquisitions. Goodwill from the Bell, Packet, and Axtel acquisitions is attributable to our Americas region and goodwill from the GPX India Acquisition is attributable to the Asia-Pacific region. Goodwill from the Bell Acquisition is expected to be deductible for local tax purposes while goodwill from the GPX India, Packet and Axtel Acquisitions are not deductible for local tax purposes. Revenues and net income and loss from operations The operating results of the GPX India Acquisition are reported in the Asia-Pacific region following the date of acquisition. During the year ended December 31, 2021, our results of operations from the GPX India Acquisition included $6.9 million of revenues and an insignificant amount of net income from operations. Transaction costs During the year ended December 31, 2021, the transaction costs for the GPX India Acquisition were insignificant. 2019 Acquisition On April 18, 2019, we completed the acquisition of Switch Datacenters' AMS1 data center business in Amsterdam, Netherlands, for a cash purchase price of approximately €30.6 million or approximately $34.3 million, at the exchange rate in effect on April 18, 2019.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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