Equinix Expands in Latin America, Completes Acquisition of Four Data Centers in Chile
Deal accelerates digital transformation opportunities for local, regional and global companies
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 / Key Facts
- The addition of the five data centers is expected to be immediately accretive to
Equinix'sadjusted funds from operations (AFFO) per share upon close, excluding integration costs. The acquisition of the data center in Peruis expected to close in coming quarters, subject to the satisfaction of closing conditions. The five facilities generate approximately US$55 millionof annualized revenue using current exchange rates in effect on the dates of signing and represent a purchase multiple of approximately 23x EV / 2021 adjusted EBITDA including Equinix SG&A expenses. Chileis the fourth-largest economy in South America, with the highest GDP per capita in the region. Santiagois emerging as a technology hub in South America, serving both regional cloud and content demand as well as local enterprises.
- The four data centers in the
- The Ciudad de los Valles location, which features two data centers with approximately 170,000 gross square feet combined, and is the largest multitenant data center site in
Santiago, with ample expansion opportunities.
- The downtown
Santiagosite, which features 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 city government center.
- The approximately 31,000 gross square foot facility in Longovilo, which is strategically located away from the city center to meet the backup and disaster recovery needs of customers, including financial institutions.
- The data center in
Peruis approximately 16,000 gross square feet and is a well-established site located in Lima.
- Approximately 100 Entel employees and contractors are expected to become
Equinixemployees or contractors under the terms of the agreement.
- The more than 100 Entel customers currently operating in the four data centers will become
Equinixcustomers, with more than 75 of these representing net-new customers. The acquired customers comprise a diversity of sectors 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,
Equinixwill extend its presence to five countries in Latin America, including Brazil, Chile, Colombia, Mexicoand Peru, operating 16 IBX data centers in seven metros. Equinixplans to introduce a full range of interconnection and digital services to the four data centers in Chile, including Equinix Fabric™, Network Edge, Equinix Internet Exchange®, Equinix Internet Access and Metro Connect®, upon the completion of the business integration. This will enable customers in Chileto connect in real time, directly and privately, to more than 10,000 companies, including more than 2,000 networks and ~3,000 cloud and IT service providers, through Platform Equinix for increased performance, security and scale. Chilealso has access to non-conventional renewable energy (NCRE) such as solar, hydro and wind, which not only offsets data center operating costs, but significantly contributes toward carbon neutrality.
- Citi served as exclusive financial advisor to Equinix in connection with this transaction.
Tara Risser, President, Americas, Equinix:
"We continue to see demand from businesses in
Latin America, across all sectors, looking to transform their operations to be digital and cloud-enabled. Equinix'sexpansion into Chileand Peruaccelerates digital transformation opportunities in this rapidly growing region and is a critical step in our long-term strategy to broaden digital access for our customers globally. Chile'saccess to sustainable energy sources such as solar, hydro and wind helps our customers in the region—as well as multinationals doing business with them—to grow responsibly and sustainably, which aligns with our global sustainability strategy."
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This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual results to differ materially from expectations discussed in such forward-looking statements, including statements related to the acquisition of data centers from Entel, including the data center in Peru which is still pending, the expected benefits from the acquisition and the expected timing for closing the
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