Equinix Expands in Latin America, Completes Acquisition of Four Data Centers in Chile

About this update from Equinix, Inc.

[{"type":"text","content":"Deal accelerates digital transformation opportunities for local, regional and global companies\nREDWOOD CITY, Calif., May 3, 2022 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company™, 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\"), a leading Chilean telecommunications provider. 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.\n\n \n \n \n \n \n \n\n \nEquinix 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. \nUnder 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.\nHighlights / Key Facts\nThe 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.Chile is the fourth-largest economy in South America, with the highest GDP per capita in the r...

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