Equinix expands in Latin America and completes the acquisition of four data centers in Chile
Agreement accelerates digital transformation opportunities for local, regional and global businesses
REDWOOD CITY, CA., May 3, 2022 /PRNewswire/ — Equinine, Inc. (Nasdaq: EQIX), the global digital infrastructure™ company, today announced that it has extended Platform Equinix® deeper into Latin America following the finalization of the acquisition of four data centers in Chile of Empresa Nacional De Telecomunicaciones SA (“Entel”), a major Chilean telecommunications provider. Equinix also announced that it has signed an agreement to acquire an additional data center at Peru, also from Entel, subject to satisfaction of closing conditions. The enterprise value of the five data centers is approximately US$735 million at the exchange rates in force on the dates of signature.
Equinix has a ten year history in Latin America and currently operates 11 International Business Exchange™ (IBX®) data centers in Brazil, Colombia and Mexico. The addition of four new data centers in the strategic sector Santiago, Chile metro, a growing data center and technology hub, offers local businesses and multinationals the opportunity to accelerate their digital transformation while cementing Equinix’s position as the largest provider of digital infrastructure services. In the region. The new data centers provide significant expansion capacity for the future growth of santiagoenabling Equinix to meet the immediate and future needs of customers.
Under the terms of the agreement, Equinix and Entel have agreed to form a strategic partnership to enable enterprises to leverage hybrid multicloud solutions to accelerate their digital transformation.
Highlights / Highlights
- The addition of the five data centers is expected to be immediately accretive to Equinix’s adjusted funds from operations (AFFO) per share at closing, excluding integration costs. The acquisition of the data center of Peru is expected to close in the coming quarters, subject to the satisfaction of closing conditions. The five facilities generate approximately $55 million of annualized revenue using current exchange rates prevailing at the signing dates and represent a purchase multiple of approximately 23x EV / 2021 Adjusted EBITDA, including Equinix’s SG&A expenses.
- Chile is the fourth largest economy in South Americawith the highest GDP per capita in the region. santiago is becoming a technology hub in South Americacatering to both regional demand for cloud and content, as well as local businesses.
- The four data centers of the santiago the metro includes:
- The Ciudad de los Valles location, which includes two data centers of approximately 170,000 combined gross square feet, and is the largest multi-tenant data center site in santiagowith many possibilities for expansion.
- The city center santiago site, which comprises approximately 46,000 gross square feet. It is a network-dense facility adjacent to the Entel Tower, a key internet exchange facility in the market that is close to the center of the city’s government.
- The approximately 31,000 gross square foot facility in Longovilo, which is strategically located away from downtown to meet the backup and disaster recovery needs of customers, including financial institutions.
- The data center of Peru is approximately 16,000 gross square feet and is a well-established site located in Lima.
- Under the terms of the agreement, approximately 100 Entel employees and contractors are expected to become Equinix employees or contractors.
- Entel’s more than 100 customers currently operating across the four data centers will become Equinix customers, of which more than 75 represent net new customers. Acquired customers span a diversity of industries and include over 20 network service providers (NSPs) and a strong financial services ecosystem, with leading local and global players.
- By expanding its platform to the Southern Cone, Equinix will extend its presence to five countries in the Latin Americaincluding Brazil, Chile, Colombia, Mexico and Peruoperating 16 IBX data centers in seven metros.
- Equinix plans to introduce a full range of interconnect and digital services across all four data centers of Chileincluding Equinix Cloth™, Network edgeEquinix Internet Exchange Point®, Equinix Internet Access and Metro Connect®, once business integration is complete. This will allow customers to Chile to connect in real time, directly and privately, to 10,000+ enterprises, including 2,000+ networks and ~3,000 cloud and IT service providers, through Platform Equinix for increased performance, security, and scalability.
- Chile also has access to non-conventional renewable energy (NCRE) such as solar, hydro and wind, which not only offset data center operating costs, but contribute significantly to carbon neutrality.
- Citi served as exclusive financial advisor to Equinix on this transaction.
- Tara RisserPresident, Americas, Equinix:
“We continue to see business demand in Latin America, across industries, looking to transform their operations to be digital and cloud-enabled. Equinix’s expansion into Chile and Peru accelerates digital transformation opportunities in this rapidly growing region and is a critical step in our long-term strategy to expand digital access for our customers globally. from Chile access to sustainable energy sources such as solar, hydro and wind power helps our customers in the region, as well as the multinationals that do business with them, to develop in a responsible and sustainable way, which is aligns with our global sustainability strategy. »
equinix (Nasdaq: EQIX) is the world’s digital infrastructure company, enabling digital leaders to leverage a trusted platform to bring together and interconnect the foundational infrastructure that powers their success. Equinix connects today’s businesses to all the right places, partners and opportunities they need to accelerate their advantage. With Equinix, they can scale with agility, accelerate the launch of digital services, deliver world-class experiences and multiply their value.
This press release contains forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual results to differ materially from the expectations discussed in such forward-looking statements, including statements relating acquisition of data centers. of Entel, including the data center in Peru which is still on hold, the expected benefits of the acquisition and the expected timing for the closure of the Peru acquisition. Factors that could cause such differences include, but are not limited to, risks to our business and results of operations related to the COVID-19 pandemic, unforeseen costs or difficulties related to the integration of centers data centers or companies that we have acquired or will acquire from Equinix, including data centers that we have acquired from Entel; challenges associated with acquiring, operating and building IBX data centers and developing, deploying and delivering Equinix services, including at Entel’s data centers; an inability to receive meaningful revenue from customers in newly built or acquired data centers, including those acquired from Entel; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding debt; the loss or decline in business of our major customers; and other risks described from time to time in Equinix’s filings with the Securities and Exchange Commission. In particular, see Equinix’s recent quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix assumes no obligation to update the forward-looking information contained in this press release.