Digital infrastructure company Equinix, Inc today announced its planned expansion into Chile and Peru. The company is going to achieve that through an acquisition of four data centers from Empresa Nacional De Telecomunicaciones S.A. (“Entel”), a leading Chilean telecommunications provider in a $705 million deal.
The transaction is expected to close in the second quarter of 2022. The acquisition will also contribute to Equinix’s adjusted funds from operations (AFFO) per share upon close, excluding integration costs. The acquisition deal includes three data centres in Chile and may also include one data centre in Peru pending finalization of a definitive agreement.
The fourth-largest economy in South America, Chile as the highest GDP per capita in the region. Additionally, Santiago is emerging as a technology hub in South America.
The acquisition is expected to expand Equinix’s coverage in this strategic market. With three data centre sites in Santiago, the deal also includes significant expansion capacity for future growth in the city. This will allow Equinix to support both immediate and future growth in the region.
Under the terms of the deal, Equinix and Entel have will form a strategic partnership to enable enterprises in Chile and Peru to leverage hybrid multicloud solutions to accelerate their digital transformation.
Charles Meyers, President and CEO, Equinix commented:
Latin America holds enormous potential, and our commitment to the region has exponentially grown since we entered back in 2011. Chilean, Peruvian and multinational companies are thirsting for the digital infrastructure required to thrive in today’s economy; with today’s expansion, we’re broadening digital access and accelerating digital transformation across Latin America, while supporting growth in a responsible and sustainable manner.
Antonio Büchi, CEO, Entel
This strategic partnership with Equinix, a world leading digital infrastructure company, allows us to focus our resources on businesses that add value to our customers. Entel has transformed over the years, and this partnership, which is more than an infrastructure transaction, is intended to set an important milestone in our strategic plan to extend our offerings into delivering digital services and provide expertise with new solutions that will accelerate our client’s digital transformation.
Earlier in February, Equinix, annouced opening its new International Business Exchange (IBX) data center (MU4) in Aschheim near Munich, Germany. The company also expanded into Africa by acquiring MainOne, a West African data center and connectivity solutions provider.
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