Equinix agreed to acquire four data centers from Chile’s Empresa Nacional De Telecomunicaciones (Entel) for an enterprise value of approximately US$705 million. The deal includes three data centers in Santiago, Chile and one in Lima, Peru.
Charles Meyers, President and CEO, Equinix: “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.”
Some highlights:
- The four facilities generate approximately US$53 million of annualized revenue and represent a purchase multiple of approximately 23x EV / 2021 adjusted EBITDA including Equinix SG&A expenses. The acquisition is expected to be AFFO per share accretive upon close, excluding integration costs.
- Approximately 120 Entel employees and contractors are expected to become Equinix employees or contractors under the terms of the agreement.
- The more than 100 Entel customers currently operating in the four data centers will become Equinix customers, with more than 75 of these representing net-new customers.
- The three data centers in Chile are located in the metropolitan area of Santiago and have different strategic characteristics. The Ciudad de los Valles location is the largest multitenant data center in Santiago, with ample expansion opportunities. The downtown Santiago site is a network-dense facility, adjacent to the Entel Tower, a key IX facility in the market, and close to the city government center, within a heightened security environment. The facility in Longovilo is strategically located away from the city center to meet the backup and disaster recovery needs from financial institutions.
- The Peruvian data center is a well-established Tier III site located in Lima, the capital of Peru.
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