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Equinix's IBX Selected by ParFX

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Equinix’s (EQIX - Free Report) London Slough International Business Exchange (IBX) data center has been chosen by ParFX, a platform provider, for spot foreign exchange trading. ParFX is a subsidiary of one of the largest interdealer broker of financial and commodity products–Tradition.

Equinix’s global presence through its IBX data centers coupled with its connections with numerous foreign exchange institutional traders, trading platforms and Electronic Communication Network primarily prompted ParFX to choose Equinix’s data centre.

Moreover, by selecting Equinix’s IBX data center, ParFX will be able to expand its business by connecting to 800 financial services institutions.

Separately, Kontiki, a cloud-based enterprise video platform and content delivery network provider, has selected Equinix’s LD5 (London-based) IBX data center to expand its European customer base. For Equinix, these deal wins are expected to support its top-line growth.

The data center business is thriving across geographies and Equinix is trying to capture a large part of this market. Consequently, it is now exploring opportunities in both developed and emerging economies.

Moving on those lines, the company recently declared its plan to build an IBX data center in Osaka, Japan, and Singapore. More recently, the company is opening its fourth data centre in Tokyo named TY4 for an estimated investment of $43 million.

Apart from its plans of expansion, the consolidation of existing facilities forms part of Equinix’s core strategy. The company has also been striving to boost its revenue base and profitability by improving its technology to attract more clients. Moreover, the recurring revenue model has provided the much-needed support to Equinix, augmenting its revenue stream over the years.

Moreover, Equinix has been able to reduce its turnaround time. Earlier, the company took a considerable time to close sales after the customers agreed to license cabinet space at any of its IBX centers. Though the company is regularly inking deals, its sales have suffered due to the delay in making service renewal decisions.

While the various deals have boosted the company’s revenues, the company must work to reduce its debt level although it has cleared a considerable amount of debt in the reported quarter. Additionally, rising competition from rivals such as AT&T Inc. (T - Free Report) remains a concern. European exposure and industry consolidation are the other headwinds.

Equinix carries a Zacks Rank #4 (Sell). Investors can also consider stocks such as Semiconductor Manufacturing International Corp. and SanDisk Corp , both carrying a Zacks Rank #1 (Strong Buy).

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