Equinix acquires remaining 47% stake in ALOG, furthers Brazil, Latin America presence
Equinix has completed the acquisition of the remaining stake it did not own in Brazil's ALOG Data Centers for $225 million, a move that reflects its growing presence in the Latin American market.
In April 2011, Equinix joined Riverwood Capital to acquire a majority stake in ALOG, with Equinix holding a 53 percent ownership of the company. The data center provider now has bought the remaining 47 percent stake and will integrate ALOG into Equinix.
This deal will extend Platform Equinix into the Latin America market, creating what it says will be a "seamless experience for customers between Equinix's global footprint of 101 International Business Exchange (IBX) data centers across 32 markets."
Today, ALOG serves nearly 1,500 customers across its four data centers in São Paulo and Rio de Janeiro--two of Brazil's largest markets.
The ALOG purchase will enable Equinix to respond to strong demand from its network, content, cloud, enterprise and financial services customers that want to establish a presence in Brazil.
In related news, ALOG has completed the third phase of its second São Paulo (SP2) International Business Exchange (IBX) data center one month ahead of schedule. One of the key benefits of this center is that it can help enterprise and cloud computing customers reduce IT infrastructure costs, extend their global reach and connect with new customers and partners on Platform Equinix.
Some of Equinix's customers are already seeing cost reduction benefits from the data center expansion effort. Search engine provider Apontador and Maplink, an API geo-localization platform provider, said they have reduced their IT infrastructure costs by 30 percent while lowering latency and ensuring a high-quality online experience for millions of users.
- see the acquisition release
- and the ALOG expansion release
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