Equinix Acquires Data Centers in Chile and Peru

Tuesday, 03/05/2022 | 17:24 GMT by Felipe Erazo
  • Chile has the fourth-largest economy in South America.
  • In Peru, the data center covers approximately 16,000 square feet.
fintech
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Equinix, a digital infrastructure company, announced on Tuesday that it completed the acquisition of four data centers in Chile from Empresa Nacional de Telecomunicaciones S.A. (Entel) to expand in Latin America.

According to the press release, the firm signed a deal to purchase one additional data center in Peru from Entel. The enterprise value for the five data centers is approximately $735 million as of press time. Equinix expects the acquisition of the five data centers to have an immediate positive impact on adjusted funds from operations (AFFO) per share.

The closing of the acquisition of the Peruvian data center is expected within the next few quarters, subject to the satisfaction of closing conditions. Under current exchange rates, the five facilities generate approximately $55 million of annualized revenue, representing a multiple purchase of approximately 23x EV/2021 adjusted EBITDA, including Equinix SG&A expenses.

Data Centers Distribution

Equinix will become the new home for more than 100 Entel customers operating in the four data centers, including more than 75 new customers. In addition to over 20 NSPs and a strong financial services ecosystem, the acquired customers represent a diverse range of sectors.

"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'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 broaden digital access for our customers globally. Chile's access 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,” Tara Risser, the President at Americas of Equinix, commented.

In Chile, Equinix's four data centers will be connected through Equinix Fabric, Network Edge, Equinix Internet Exchange, Equinix Internet Access and Metro Connect after the business integration is completed.

Equinix, a digital infrastructure company, announced on Tuesday that it completed the acquisition of four data centers in Chile from Empresa Nacional de Telecomunicaciones S.A. (Entel) to expand in Latin America.

According to the press release, the firm signed a deal to purchase one additional data center in Peru from Entel. The enterprise value for the five data centers is approximately $735 million as of press time. Equinix expects the acquisition of the five data centers to have an immediate positive impact on adjusted funds from operations (AFFO) per share.

The closing of the acquisition of the Peruvian data center is expected within the next few quarters, subject to the satisfaction of closing conditions. Under current exchange rates, the five facilities generate approximately $55 million of annualized revenue, representing a multiple purchase of approximately 23x EV/2021 adjusted EBITDA, including Equinix SG&A expenses.

Data Centers Distribution

Equinix will become the new home for more than 100 Entel customers operating in the four data centers, including more than 75 new customers. In addition to over 20 NSPs and a strong financial services ecosystem, the acquired customers represent a diverse range of sectors.

"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'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 broaden digital access for our customers globally. Chile's access 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,” Tara Risser, the President at Americas of Equinix, commented.

In Chile, Equinix's four data centers will be connected through Equinix Fabric, Network Edge, Equinix Internet Exchange, Equinix Internet Access and Metro Connect after the business integration is completed.

About the Author: Felipe Erazo
Felipe Erazo
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About the Author: Felipe Erazo
Felipe earned a degree in journalism at the University of Chile with the highest honour in the overall ranking, and he also holds a Bachelor of Arts in Social Communication. In addition, he has been working as a freelance writer and Forex/crypto analyst, with experience gained from several forex broker firms and crypto-related media outlets around the world. He has been involved in the world of online forex trading since 2010 and in the crypto sphere since 2015.
  • 1036 Articles
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