Equinix completes acquisition of four data centers in Chile
Digital infrastructure company Equinix, Inc. (NASDAQ:EQIX) today announced it has extended Platform Equinix deeper into Latin America following the completion of the acquisition of four data centers in Chile from Empresa Nacional De Telecomunicaciones S.A. (Entel). Equinix also announced it has signed an agreement to acquire one additional data center in Peru, also from Entel, subject to the satisfaction of closing conditions.
The enterprise value for the five data centers is approximately US$735 million at current exchange rates in effect on the dates of signing.
Equinix has a decade-long 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 Santiago, Chile metro—a growing data center and technology hub—provides an opportunity for local businesses and multinational companies to accelerate their digital transformation while solidifying Equinix’s position as the largest provider of digital infrastructure services in the region.
The new data centers offer significant expansion capacity for future growth in Santiago, allowing Equinix to support both immediate and future customer needs.
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.
The addition of the five data centers is expected to be immediately accretive to Equinix’s adjusted funds from operations (AFFO) per share upon close, excluding integration costs. The acquisition of the data center in Peru is expected to close in coming quarters, subject to the satisfaction of closing conditions.
The five facilities generate approximately US$55 million of 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.
Approximately 100 Entel employees and contractors are expected to become Equinix employees or contractors under the terms of the agreement.
By expanding its platform to the Southern Cone, Equinix will extend its presence to five countries in Latin America, including Brazil, Chile, Colombia, Mexico and Peru, operating 16 IBX data centers in seven metros.
Equinix plans 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 Chile to 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.