Acquisition

3 Months Ended

Mar. 31, 2022

Business Combinations [Abstract]

Acquisition

Acquisition

On June 7, 2021, Switch, Ltd. acquired all of the equity interests of Data Foundry and certain real property interests used in connection with Data Foundry’s operations for total cash consideration of $420.0 million, which includes $3.7 million outstanding as of March 31, 2022 to be paid prior to June 7, 2022 upon the finalization of certain closing conditions and $4.6 million of acquired cash, cash equivalents, and restricted cash.

Supplemental pro forma results of operations for the Company, assuming the acquisition had occurred on January 1, 2020, are as follows (in thousands):

	Three Months Ended March 31, 2021
Revenue	$	142,445
Net income attributable to Switch, Inc.	$	9,516

The above supplemental pro forma results of operations include the following adjustments and related income tax and noncontrolling interest impacts after applying the Company’s accounting policies:

•additional depreciation and amortization expense reflecting the fair value adjustments to property and equipment and intangible assets;

•adjustment to interest expense to reflect the removal of Data Foundry’s debt and the issuance of Switch, Ltd.’s $500.0 million aggregate principal amount of its 4.125% senior unsecured notes due 2029 in conjunction with the acquisition; and

•adjustment to reflect acquisition-related costs incurred during the three months ended March 31, 2021 as incurred during the three months ended March 31, 2020.