Equinix plans to buy data centers in Chile and Peru

Equinix Inc. has agreed to buy four data centers from Empresa Nacional De Telecomunicaciones S.A., a Chilean communications services provider (Entel).

Three of the facilities are in Chile and one is in Peru, with a total value of $705 million. The deal is likely to finalize in the second quarter of this year, with the addition of the Peruvian facility contingent on a definitive agreement being reached.

Equinix’s admission into the two South American countries would be sealed if the acquisition is completed. The three Chilean facilities are located in downtown Santiago, Ciudad de los Valles, and Longovilo, respectively, in the Santiago metro region.

Lima is the location of Peru’s Tier III data center. The facilities will service more than 100 new Equinix clients, with more than 75 of them being net new customers, according to Equinix.

Equinix estimates that the four facilities together generate $53 million in annum revenue. As a result, the offer has a purchase multiple of around 23X EV/2021 adjusted EBITDA, which includes Equinix SG&A spending.

A total of 120 Entel employees and contractors would become Equinix employees or contractors as part of the acquisition, in addition to the data centers. With the establishment of data centers in Chile and Peru, Equinix will now hold data centers in five Latin American nations, joining Brazil, Colombia, and Mexico.