Equinix gains instant Latin American presence by completing its ALOG acquisition
Equinix (Nasdaq: EQIX), together with private equity partner Riverwood Capital, has completed its acquisition of a major stake in Brazil-based ALOG Data Centers.
With this all cash deal complete, Equinix will instantly gain presence in the growing Latin American telecom and data center market. The data center provider invested about $83 million, a figure that includes about $68 million to fund the acquisition and about $15 million to pay for new data center expansions in the region.
Through the ALOG investment, the service provider will extend Platform Equinix into the South American market, creating a footprint of 95 data centers across 37 global markets. What's more, Equinix will be able to provide its network, content, cloud and financial service customers access to the Brazilian market-something it could not do before the ALOG deal.
With the deal now complete, Equinix will hold the controlling interest and sit on ALOG's board of directors, while Riverwood will hold a "significant minority stake." Besides having a new majority owner, it will be business as usual at ALOG with current members of its management team holding about 10 percent ownership of the company and Sidney Breyer remaining as CEO. However, three years after the deal is closed, Equinix does have the right to purchase 100 percent of ALOG.
- see the release
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