Equinix Acquires Data Centers in Chile and Peru

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 its arms 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 $735 million approximately 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.

A 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 purchase multiple 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, 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 its arms 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 $735 million approximately 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.

A 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 purchase multiple 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, 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.

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