Switch Inc. recently launched its Fifth Prime location in Texas. To propel this initiative, Switch has entered into a definitive agreement to acquire carrier-neutral colocation provider, Data Foundry Inc., 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.

The transaction provides Switch with future expansion opportunities in Texas, which complements and diversifies Switch’s existing geographic footprint and revenue exposure. Moreover, the acquisition of Data Foundry expands the Switch portfolio to 16 operational data centers across six locations and will anchor the company’s Fifth Prime data center campus. The acquisition will also add more than 400 customer logos, offering cross-selling opportunities and the potential for significant customer expansion.

Data Foundry is headquartered in Austin, and the firm has data centers in Austin and Houston.