Digital infrastructure company, Equinix announced its planned expansion into Chile and Peru through its intended acquisition of four data centers from a leading Chilean telecommunications provider, for an enterprise value of approximately US$705 million. The acquisition is expected to close in Q2 of 2022, subject to the satisfaction of customary closing conditions, and is expected to be immediately accretive to Equinix’s adjusted funds from operations per share upon close, excluding integration costs.
Chile and Peru
The transaction includes three data centers in Chile; the transaction may also include one data center in Peru pending the finalization of a definitive agreement. When closed, the transaction will expand Equinix’s coverage in this strategic market, solidifying its leadership as the top regional provider of digital infrastructure services.
With three data center sites in Santiago, Chile, the transaction also includes significant expansion capacity for future growth in Santiago, allowing Equinix to support both immediate and future growth in the region. Under the terms of the agreement, Equinix and Entel have agreed to form a strategic partnership to enable enterprises in Chile and Peru to leverage hybrid multi-cloud solutions to accelerate their digital transformation. Charles Meyers, President and CEO of Equinix said,
« Latin America holds enormous potential, and our commitment to the region has exponentially grown since we entered back in 2011,” said Charles Meyers, President and CEO, Equinix. “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. »