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Exhibit 99.1
Switch Launches Fifth Prime Campus in Texas;
Agrees to Acquire Data Foundry
Company Provides Preliminary First Quarter 2021 Results
LAS VEGAS, NV May 3, 2021 Switch, Inc. (NYSE: SWCH) (Switch), the exascale technology infrastructure corporation, today announced that it has launched its Fifth Prime location in Texas. To launch this initiative, Switch has entered into a definitive agreement to acquire Data Foundry, Inc. (Data Foundry), a carrier-neutral colocation provider, for $420 million in an all cash transaction. The acquisition is expected to close by mid-2021, subject to the satisfaction of customary closing conditions, including regulatory approval.
Headquartered in Austin, Texas, and with data centers in Austin and Houston, Data Foundry is strategically located in a rapidly growing technology hub which offers a highly favorable business environment for both mature enterprises and early-stage growth companies. In addition, the transaction provides Switch with attractive future expansion opportunities in Texas, which complements and diversifies Switchs existing geographic footprint and revenue exposure.
The acquisition of Data Foundry expands the Switch portfolio to 16 operational data centers across six locations and will anchor the companys Fifth Prime data center campus. The acquisition will also add over 400 customer logos, offering robust cross-selling opportunities and the potential for significant customer expansion.
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Switch, Inc.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2021 10-K Annual Report includes:
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Most of our customer agreements provide the ability to increase our prices in response to an increase in the cost of energy; however, our gross profit can be adversely affected by increases in our cost of energy if we choose not to pass along the increases to our customers.
We believe that the inclusion of certain adjustments in presenting Adjusted EBITDA and Adjusted EBITDA margin is appropriate to provide additional information to investors because Adjusted EBITDA and Adjusted EBITDA margin exclude certain items that we believe are not indicative of our core operating performance and that are not excluded in the calculation of EBITDA.
The increase was primarily attributable to increases of $6.5 million in depreciation and amortization expense due to additional property and equipment being placed into service and $1.5 million in facilities costs due to increased utility rates.
Accordingly, we believe that Adjusted EBITDA and Adjusted EBITDA margin provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by our management in its financial and operational decision-making.
Selling, General and Administrative Expense...Read more
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Revenue from recurring revenue streams...Read more
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Adjusted EBITDA is also similar...Read more
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Noncontrolling Interest We consolidate the...Read more
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Cost of Revenue Cost of...Read more
Headquartered in Austin, Texas, and...Read more
Switch, Inc. | Q1 2021...Read more
While we have not incurred...Read more
On September 17, 2020, we...Read more
Nonetheless, as an unbundled purchaser...Read more
Switch, Inc. | Q1 2021...Read more
Because forward-looking statements are inherently...Read more
We believe we have sufficient...Read more
Our brand or reputation could...Read more
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(2)Acquisition-related costs and shareholder-related litigation...Read more
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Financial Statements, Disclosures and Schedules
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Switch, Inc. provided additional information to their SEC Filing as exhibits
Ticker: SWCH
CIK: 1710583
Form Type: 10-Q Quarterly Report
Accession Number: 0001710583-21-000024
Submitted to the SEC: Mon May 10 2021 4:15:14 PM EST
Accepted by the SEC: Mon May 10 2021
Period: Wednesday, March 31, 2021
Industry: Computer Programming Data Processing