Equinix eyes Chile and Peru entry with $705 Mn Acquisition of 4 Entel Data Centers

Nasdaq listed Equinix, Inc., announced its planned expansion into Chile and Peru through possible acquisition of four data centers from Chilean telecommunications provider Empresa Nacional De Telecomunicaciones S.A. (“Entel”), for an enterprise value of approximately US$705 million. 

The transaction includes three data centers in Chile and may also include one data center in Peru pending finalization of a definitive agreement.

Equinix is expected to close the acquisition 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 (AFFO) per share upon close, excluding integration costs, according to a statement released by the company.

Executive VP and GM, Data Center Services at Equinix, Jon Lin said, “The growth Chile and Peru are experiencing is driving and expanding a new set of requirements around data center and cloud connectivity. With these new sites, businesses in this region as well as multinationals will be able to operate on an expanded global interconnection platform to process, store, interconnect and distribute larger volumes of latency-sensitive data and applications at the digital edge, closer to end users and local markets.”

Equinix is one of the biggest digital infrastructure companies in the world and Chile is the fourth-largest economy in South America, with the highest GDP per capita in the region. According to IDC, enterprise edge spending in Latin America is expected to reach $8.573 billion by 2024, and in Chile it is anticipated to grow by double digits in the same period. 

Furthermore, between 2020 and 2024, IDC anticipates that cloud spending in Chile will increase 34.6%.

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. 

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