US-based digital infrastructure company Equinix will expand into Chile and Peru through its acquisition of four data centres from Entel for US$705 million.
The acquisition is expected to close in Q2 this year and is expected to immediately increase Equinix’s adjusted funds from operations per share (excluding integration costs).
The transaction includes three data centres in Chile and one in Peru pending finalisation of a definitive agreement.
The four facilities generate an approximate US$53 million of annualised revenue. Around 120 Entel staff will join the Equinix ranks, and 100 Entel customers to join its books
Equinix highlighted the attraction of the Chilean market by pointing to how it is the fourth-largest economy in Latin America with the highest GDP in the region. Capital city Santiago is emerging as a tech hub on the continent serving both regional cloud and content demand as well as local enterprises.
According to analyst firm IDC, enterprise edge spending in Latin America is tipped to reach $8.5 billion by 2024 and in Chile, it is predicted 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%.
Equinix President and CEO Charles Meyers: "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."